Thursday 7 November 2013

Chop Suey Practice

Blimey what a morning. Clear overnight UWTC  broke down into a fairly clear DWTL with 3 legs until it hit the h1 21EMA where it "W" bottomed.

1. would have tried to take a swing long off the second bottom, esp seeing that the DWTL had been tested. but that fizzled out pretty quick for a loss (1: -0.2)
2. stopped out of first trade and price made a  "M".
A rather unclear UWTL could be drawn from the "W" first low so...
3.  would have tried taking a w trend long off the UWTL, price then stalled at prior highs for a BE (1: 0)
With so little progress either direction, price appeared to be in range so only option was to sell high or buy low.
4. Would have got short off the 3rd top at the RNG high back into H1 21EMA (1 : 1.5 at the v best)


Also looked at the EJ which was clearer than the EU , however the spread size would have made it hard to trade.

Clear DWTL with 2 legs down to test H1 21EMA, this then BO and PB to 21EMA made for a perfect...
1. MSR (21EMA PB) long swing for a (1: 0.7)
this move finished 3 legs up by bashing into R making it at least a valid scalp back into S so...
2.  2nd entry short into S ( at best 1:1)


Summary:  difficult , but EJ was definitely easier to trade than EU.

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