Wednesday, March 18, 2009

March 18, 2009 Fed Day Trade #1 Long 2 Contracts for Gap Fill

I had drawn in a 3 and 10 minute downchannel which looked like a bull flag to me. I noticed the gap was a big gap down, and that there was an oversold condition on the 3 minute chart, I just waited for the open to see if support at the lower edge of the channel was holding. I saw my W forming on the 233 tick chart and went long with a stop 2 ES ticks below the 766.75 swing point (premarket low). It held by 1 tick hehe. I trailed the second contract for a much greedier target (e.g. trying for full gap fill), but the trail stop was hit. Trade got +2, +.5 points. Analysis and charts below:
Trade 1 Screenshot