Trade #1:
My first trade was just the first 3 minute chart significant (looking) pullback to the daily R2 pivot level. Often these levels do not hold exactly but within some sort of range, it in general held. If levels are breached but the price snaps back over support that is a good sign too. I did not trust it to run too much as a potential double top off an extended move was possible.
Trade 1
Trade #2:
The rally hit the daily downtrend line on highs, and showed signs of topping out. We got tails on the 10 and 60 minute chart as well as a well-defined divergence on the 3 minute chart for the MACD (price makes new highs but the MACD does not and curls over). A failed attempt to go back to the highs and becoming very overbought on a smaller timeframe (233 tick chart) was the perfect opportunity to short with a reasonable stop. The only big warning sign was that it was lunchtime when trading should be done with caution:
Trade 2
Trade #3:
I was debating whether or not to do any afternoon trades, as there was a big chop zone which had developed. It looked dangerous to trade on either side, either long or short. I saw the a significant 60 minute trendline (on highs) being rejected and figured I could squeeze in one last trade on the short side. I took my stop. Eventually the big congestion area turned out to be a bull flag as new highs were made late in the day.
Following is my analysis of my trade:
Final Trade 3
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Sunday, March 15, 2009
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