Tuesday, March 24, 2009

March 24, 2009 Tuesday Trade 3, 4 Shorts

I have been playing oscillations today due to range-bound behavior. Both my trades 3 and 4 were both based on shorting an overbought condition. Trade 3 entry was too early and I was stopped out for -1.75, Trade 4 I got better entry/confirmation and got between +1.25 and +1.75 on heavier size. Important to note that trade 3 I shorted while the 3 minute stochastics had been embedded in high bands for 9 bars or so, which is a condition for being a bear trap, it is better to wait for the stochastics to get under 80 and stop being embedded as I did for trade 4. Also, a 233 tick chart divergence between MACD and price had developed for my trade 4 which gave me more confidence it would work on the second try.

Trade 3 (Short 2 Contracts Stopped Out -1.75, -1.75):
Trade 4 (Short 3 Contracts +1.25, +1.75, +1.5):
Trade 3 and 4 Screenshot