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Those who watched the spoo yesterday following my post regarding the pivot
low rim at 128350, saw the spoo hit the 128350 before it began
consolidating. These market
moves are no accident!
The attached 2 minute chart shows symmetry which failed. As noted, I exited
my short position (on the 30 minute chart) a few ticks above 128350 and
watched for an opportunity to re-enter my short position following an
appropriate correction. I often watch for symmetry inside of major pivot
points to I don't have to enter on a breakout and I can minimize my risk. In
this case I was watching the symmetry between the heavy red and green lines.
When price first returned to the heavy red line at 128425, I drew my green
resistance line at 128775 and waited to see if the rally would take it out.
When it failed to take it out and started declining, I put in a stop order
to enter a tick below the red line. Once filled at 128400, the green line
became my stop. However, the formation was a bit choppy and the retracement
toward the green line represented a large percentage of the decline from the
128850 high so I was a bit edgy about the trade. Thus, I was also watching a
"mini" symmetry setup with resistance at the cyan line (128550). When price
failed to accelerate through the 128350 low and then rallied back through
the resistance of the mini setup, I knew it was time to get out and wait for
clarification - total loss 1-1/2 handles per contract.
Earl
----- Original Message -----
From: "EAdamy" <eadamy@xxxxxxxxxx>
To: "Realtraders" <realtraders@xxxxxxxxxxxxxxx>
Sent: Thursday, May 24, 2001 8:45 AM
Subject: [RT] Symmetry
> Here's another one coming up on 30 min spoo. Horizontal blue line from
left
> pivot low represents support which happens to coincide with 62% expansion
of
> first decline - thick green line on right. I will be taking profits on
short
> position just above the blue line at 128350 and look to re-establish the
> short position as it retraces back toward the blue line from the pivot
high
> to immediate left of the pivot low.
>
> Earl
>
>
>
>
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Attachment:
Description: "SP02.gif"
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