Wednesday 30 October 2013

301013 more practice and reading

This morning started choppy again.  I found it relatively easy to spot the TL and TC although  because of the chop I found identifying the legs of the moves far harder. Although there was a TC OE and subsequent test of of it that created a "M" top, this was not as definitive a REV as a TL break (a breakdown of the TC low)  that I felt I needed to commence trading in this circumstance.  So my plan was to wait for an actual BD of the TL (TC low) and then short the RL or wait for a continuation,  whichever confirmed  first.

What happened was after the "M" top was there were 3 (very) messy legs down, seeing that it this is a reversal signal and that it coincided with the UWTL and prior S.  getting long on the H2 would be the best entry.

Bar 1  was an entry H2 at UWTL  (approx 1:1)
Bar 2 BO of R and PB
Bar 3 was an L1 and marked the first leg up (expecting at least 2 legs)
Bar 4 was an H3 (PB entry) Long (approx 1:3)
Bar 5 was an L3 and marked 3 legs up so would have shorted a scalp back towards 21EMA ( approx 1:1)


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