Friday, April 3, 2009

April 3, 2009 Trades 6-10

Bad end to the week for me, at lunch I was stopped out 4 times in the row trying to short and my last trade of the day I was stopped out as well.

Trade 6 - I shorted the daily pivot failure the problem was that I was really shorting a base that had formed below the daily pivot (double bottom with slightly higher right leg 823 on 3 min chart). If you short a shallow 23.6% retracement the downtrend had better be really strong (refer to 10 min chart, I am including the premarket trading). Stopped out -1.75, -1.5 points

Trade 7 - Shorted retracement also, but this one didn't make much sense because the stochastics were still embedded in the high bands (bear trap) and we were not near any major resistance. Stopped out -2, -2.25 points

Trade 8 - Shorted retracement also, the 830 premarket level was resistance but the stochastics on the 3 min chart were still embedded in the high bands this was not a good entry either. Stopped out -2, -1.75 points

Trade 9 - This time an OK entry because I waited for the 3 minute stochastics to cross down below 80 and we had a double layer of resistance with the 10 minute 200 sma and 50 sma converging, and also the 200 sma on the 3 minute chart as resistance. As happens often the moving averages are overshot a bit. The upswing was stopped right at the daily midline 833.63 (50% fib retracement of the high and low of the day which includes the premarket trading). The stop would have needed to be about 2 ticks wider for this trade to work with the entry I got. Stopped out -2.5, -2.25 points

Trade 10 - Went long at lower edge of big uptrending channel. I initially was considering shorting the upper edge of this channel (a .618 rejection on 10 min chart and bearish Gartley) but decided against it because I didn't see a divergence to confirm. Instead I waited for the price to get to the lower edge of the upchannel. This entry was not bad, had oversold 3 minute stochastics and strong support, but sellers won. Stopped out -1.5, -1.75 points

Trade 6-10 Screenshot:
Trade 6-10 Screenshot