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On Monday Feb 2
Alan Sears wrote:
>
> May Bellies had a reversal day today off the expected target
> price for the end of the a-b-c correction.
> Look for at least a test of contract lows
Following this, a short trade could have been entered at the open
on tuesday risking to the wave C high as suggested.
Tuesday was a narrow day and the trade would have had a very small
profit by the close.
Tuesday presented another opportunity to enter a short trade as it
was an "Inside Day" ie: high was lower than prior day and low was
higher than prior day. Setup for this type of day when it occurs at
a key time and price zone for a trade is to enter on a stop order
1 tick below the low of the day BEFORE the "inside day" this
method helps eliminate many losing trades by preventing an entry.
Using this technique an order to sell at 50.67 would have been
filled on Wednesday, today the market sold-off nicely.
I would now move my stop to breakeven as a minimum and likely
take partial profits on a multi-contract trade.
Short term SRSI (8,5,3) is showing hidden divergence which would
prompt me to take partial profits or tighten stops
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