This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
Here is a shot of my setup. I plot S/R lines on my 5 minute chart (not shown) before the open. There is a trade right as I took the screen shot, but I didn’t take it. NYSE ticks pulled back (up for short), momentum is down on all timeframes, out of a decending triangle of sorts on 2 minute chart. Market made an impulse move down from here.
Setup, and a trade I didn’t take:
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
November 27th, 2007 at 6:10 pm
Thanks for that! Why didn’t you take the trade? So you want the Tick to be close to 0 when you enter?
November 27th, 2007 at 6:32 pm
Prospectus,
The NYSE ticks were fine as sometimes I sell a breakdown of tick lows, with all or most timeframes showing momo short. I was in the middle of taking a screen shot for my setup, and saw the trade. I took the screen shot, then realized I would be a bit late on what I would consider an ideal entry on a good setup. I don’t always use NYSE ticks. But in this example, you can see 89 tick, 1 min, 2 min, 3 min, and 5 min charts were all showing red candles, with a small pullback in NYSE ticks, and a break below some (minor)support on 89 tick chart led to a good entry. I generally don’t insist 5 minute chart show a red candle for shorts, but it happened to be in this example. The 5 minute is more for S/R.