Tuesday, April 7, 2009

April 7, 2009 Tuesday Trade 1 and 2

Trade 1 - Spotted 3 minute chart divergences of MACD to price showing the sell-off from premarket was getting weaker, as well as oversold. The trigger to get in was to see support holding and for the bid/ask volume indicator to show that buyers were taking control (e.g. more big contract trades at ask than bid).

Trade 2 - Overbought and saw the 822 area strong resistance (prior broken support) rejected. Trigger to get in was the bid/ask indicator showing sellers taking control. Notice how both the 3 minute chart and 233 tick chart showed big contract trades mostly at the ask (red on top side of volume bar).

Trade 1 (Long 1 Contract +.5 points):
Trade 2 (Short 1 Contract +1.25 points):
Trade 1,2 Screenshot

I traded smaller size because noticed it was very choppy in the morning.