15 Nov – weekly 200MA tops gains and prompts reversal
15 November 2018
19 Nov – Break long a damp squib, break short +100 and still going
19 November 2018Pre-open Scenarios
The TL I traded yesterday was still in play even though it was broken and regained yesterday. There was also a possibility that we could go higher if we broke the upper TL; the US session yesterday was strong, leading to an up gap at the open. It was quite a clear picture this morning.
What did the market looked like at the end of the day?
The neutral zone broke early in the session, prompting a 160pt decline.
How effective was my Neutral Zone? It told me exactly where to enter the short. How precise were my levels? RES 1 was spot on, SUP 1, SUP 2 and SUP 3 levels shown on the chart.
Strategy for today’s PA
During the first hour of the cash session, while Neutral Zone held, the 3MIn Bolli worked a treat. The fourth entry – against the RES1 level – got me into a sell juts below the high of the day.
There was a long setup on the TL break but since there was resistance directly above it and it was inside my zone, it was not a good setup. The first half hour of trade did look positive though – with an up gap of 64pts and gains that held – plus we had the futures gap above, adding weight to the long idea.
On the Neutral Zone break, I took two trades, one with a PA based SL around 40pts and a second, bigger trade with a 15pt SL. The trade with the tighter stop didn’t trigger on the first break and if it had, it would have been a loser, but I still would have traded the second break
The grey TLs with the arrows show the impulse retrace entries. I don’t take these and I need to practice them.
What I did
09:01 Sell x 75 @ 11431 for 3Min BB at TL| P&L = +0.6R
09:14 Buy x 28 @ 11439 for H1 TL break| P&L = -1R
09:18 Sell x 75 @ 11427 for 3Min BB| P&L = -1R
09:21 Sell x 74 @ 11431 for 3Min BB at RES1| P&L = +0.4R
09:25 Sell x 90 @ 11413 1Min TL (mistake)| P&L = -0.3R
09:35 Sell x 74 @ 11431 for 3Min BB at TL| P&L = +1.5R
10:24 Sell x 18 @ 11394 for H1 TL break | P&L = +1.2R
11:17 Sell x 90 @ 11397 for M1 TL break | P&L = +2R
TOTAL = +3.7
Today’s most gorgeous setup
The 3Min Bolli trade against RES 1. Two trades lower down at the TL had worked for 1:1 but this one gave a sell signal at the high of the day. See 3Min chart above.
