This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
I was stopped out of my 1st trade this morning (red 1). My risk was extremely small (5 cents). The second trade (light blue 2) did not allow me a low risk entry. I watched as oil continued to climb without me.
However, at 11:45 the QM printed a shooting star on heavy volume. High volume late in the rally can often signal at least a short-term correction. I looked to the PnF chart for my entry. It pulled back to the 45 degree trendline, and I went short. With my stop set at 7.5 cents, I was able to pull out a nice R gain of over 5:1.
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
June 4th, 2007 at 3:03 pm
Nice trade! Keep your PnF setups coming!
June 4th, 2007 at 3:25 pm
thanks
June 4th, 2007 at 7:01 pm
I saw another 45-degree thing today, I think in UAUA or CAL, on the 0.1/1 chart. It was one that pierced the trendline and then reversed again.
June 4th, 2007 at 7:15 pm
richard: i think that’s why its easier to write trading books then to actually trade…with any idea, u can come up with many examples that prove it…only time will tell if its a meaningful factor