This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com

Trader-X had an interesting play with BIDU. It gapped down with the rest of the market, and rallied all day.

I’m not sure why, but when a stock (or futures contract) is trending, it bounces off the 45 degree trendline with amazing frequency.

I used a 10 cent box with a reversal setting of three.

This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com