Wow! The Russell 2000 was down 1.74% on what would be considered a wild ride. Oil prices making new highs was one of the culprits. The market started the day flat and then trended down touching the 56 EMA. There was a trend line break using yesterday’s last 3 TS pivots. There was a trader’s trick set-up back to the 56 EMA. The entry was at 8:48 am CST with an entry of 730.00. The trade was up 1.80 points so stop was move to break even. Trade broke even. (Some traders might have exited on the bar right after the large bar up. That would have been acceptable). Trade 2 was a trend line break above the 56 EMA followed by a trader’s trick set-up. The trade occurred at the 56 EMA with an entry of 730.60 and a time of 9:27 am CST. Here is the chart for trade 1 and 2.
Trade 1 and 2
Click on chart to enlarge.
Trade three was a trend line break. Price was above the 56 EMA but quickly moved below the 56 EMA and had a trader’s trick set-up. The time of the trade was 10:27 am CST with an entry price of 729.90. Here is the chart for trade 3.
Trade 3
Click on chart to enlarge.
Trade 4 happened after a trend line break (first hour low) followed by a trader’s trick set-up. The time of the trade was 10:45 am CST with an entry price of 727.30. The trade was up slightly before being stopped out for a 2 point loss. Here is the chart for trade 4.
Trade 4
Click on chart to enlarge.
The market finally sold off hard with no valid set-ups. Trade 5 was another trend line break followed by another trader’s trick set-up. The time of the trade was 13:03 pm CST with an entry of 722.70. Since S1 was above the price at that time, there was no worry of any support below. The trade did take .80 points heat before making the objective. Trade 6 was again a trend line break followed by another trader’s trick set up. Entry time was at 14:21 pm CST with an entry price of 718.40. Here is the chart for trades 5 and 6.
Trades 5 and 6
Click on chart to enlarge.
So for today, there were 6 valid set-ups with 4 winning trades, 1 break even trade and 1 losing trade for a net profit of $600, ignoring slippage and commissions.
I hope that you are getting a better understanding of what I look for on a trader’s trick set-up and that the knowledge helps you to enjoy our fishing excursions more.
Best regards,
Ron
This is not a solicitation to buy or sell.
There is a risk in any investment.
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