Drop to weekly S1 and Pop

Thursday August 8, 2013

Several but few opportunities have existed lately for a good entry outside the 25m open range these days. Today was one of those days, and thought it’s been awhile since I’ve shared besides the trading room.  

Nothing like a good live trading video like my others, suffice for today, pics will do.

With market internals in the green, and price action falling to the daily pivot/gap – bias on my part did not see an entry downside. The only way I was going to enter, was if price action was under the daily gap at 1043,9 and the Heikin Ashi bars on my range chart were in a sell signal (red body, tail down).  EMA crossover on both charts (5/34 and 5/13/21/80) indicated it was still good to go short if I decided to. Watching the $TICK to base my entry was key.

4 Major Indices Under 25m Open Range

4 Major Indices
Under 25m Open Range

The major market indices were also dropping under the ranges which was supporting my move. 1 hour open range was also forming and would be an indicator if price was falling under 1043.3

Target 1 was to be the post 30m Support line at S2 – 1042.3. Target 2 and final target was to be the Weekly S1 at 1041.7

I’m in.

Entry

Entry at 1043.8 – Short

Place stop at 25m Open Range low at 1045.8. Price action did bounce up slightly. 

Target 1 in sight

Target 1 in sight

Ready to move stop to B/E or B/E +1.

Target 1 Hit

Target 1 Hit

Move stop. Target 2 in sight.

Target 2 in sight

Target 2 in sight

Weekly S1 at 1041.7 was my final target. If market internals were all in the red, would have moved stop to target #1 at 1042.3. Instead, was going to take off remaining contract as market internals were not supporting a trend move down.

Target 2 Hit

Target 2 Hit

I’m out. 2 contracts. 20 tick move to the short side.

Trade Ticket

Trade Ticket

Trade ticket of contract off and final out.

AM Trade

AM Trade

Big pic of AM trade under the 25m Open Range.

Trading Screen Labels

Trading Screen Labels

FYI…what it is I’m looking at.

Post Trade

Post Trade

Good move to take all contracts off at Weekly S1. Market retrace up to 25m Open range low/CAM H3 and EMA Crossover.

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Trading room member posted a link for a wonderful video of Marty Schwartz. Enjoy.

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