The Russell 2000 was again more difficult to trade today…which is to be expected after a couple of good days trading. There were 3 identifiable sideways bases that the market transitioned through. The problem is that there were few set-up in between the sideways bases. Here is the chart for the sideways bases.
Sideways Bases
Click on chart to enlarge.
The first trade of the day happened after a trend line break to the down side followed by a trader’s trick set-up. Notice on the chart how long of a down trend occurred before a set-up. That obviously makes for a more risky trade. The trade was up 1.20 points, then down .80 points before making its objective. This trade really tested the trader’s resolve. Here is the chart for trade 1.
Trade 1
Click on the chart to enlarge.
Again the market went sideways and then broke to the upside and went up substantially before forming a trader’s trick set-up. The time was 12:36 pm CST with a long entry of 746.00. The trade was up 1.30 points before stopping out for a 2 point loss…ouch! The last trade of the day was a trader’s trick above the 56 EMA with a long entry of 746.89 at 13:54 pm CST. Here is the chart for trade 2 and 3.
Trade 2 and 3
Click on chart to enlarge.
So another day at the pond completed. Days like today are difficult to handle unless you have a good trading plan and money management skills.
Best regards,
Ron
This is not a solicitation to buy or sell.
There is a risk in any investment
Comments
