This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
A breakout in my PnL, that is!
I was Martha for most of the day yesterday, grinding a +1.7R gain in ACH away to zero.
Here’s the ACH trade for +1.7R:
The other four after this were uneventful, just stopped out. Still, It sucked to be 1 for 5 and to have lost all that ground. Then, StreetSmack pointed out CT as a candidate for his short scalping strategy. It moved in a parabolic manner to the upside, and once the buying looked like it ebbed, I went short. I was in the trade for 8 minutes, and netted +5R. It was incredible! I got a bit lucky on my entry timing and the severity of the drop afterwards, but I like the idea and I’m going to study it more in the future as one of my strategies. I watched the 1 minute and price and volume during the trade, and took a partial when price stalled for a minute as indicated by the light blue line:
Keep in mind that’s a 1 minute chart! This play fits my trading strategy very well–I’m there to enter at an inflection point, where price changes from uptrending to downtrending. I buy-to-cover at the point where people are selling in capitulation, puking out their position, in a price and volume spike. I love it! Also, the candidates scream out at you, so they’re not hard to find, just like trading gaps–that’s a plus to me. This play is dangerous, and you have to be quick and have experience, but I think there’s a lot of potential there.
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
