There was some logic to it but also so much against it. The idea was that the market would fall away from the TL at the open and go down to fill the gap.
This was an OK idea but the number of factors against it meant that I should hve passesd – there was not enough in this trade’s favour.
- this cannot be a Jigsaw because there is no spike so the set up doesn’t exist
- nor can it be a TL reversal because it’s not outside the Bolli Bands
Also,
- my RES 1 level had broken during the FUT session so I moved it from 12353 to 12357 – so that was the level to trade – not 350
- the correct trade would have been more likely to be a retest of the TL (since it had broken during the futures session and the trend is up) but there was the KL above so that
- there wasn’t much evidence that this TL was active during the futures session
- All I needed to do was to wait for RES 1
THOUGHT PROCESS: the TLs are in different places on all TFs – this makes it too high risk to trade them – when in doubt stay out – don’t to war
