Another day, another dollar (or two). The Russell 2000 e-mini’s continue to show amazing volatility. A word or 2 about that in a minute. With no opening gap, the market’s direction was soon determined as it trended down 6 points for the first 30 minutes only to rally back up by a like amount. The market formed a double top right at the 56 EMA. There was a trend-line break on the opening bar and even-though the swings were large, a trader’s trick set-up show it’s head at 8:54 am CST.
Again the market found it’s footing, this time at a double bottom. After a nice rally up to the 1st hour high, the market based for a few bars. At 9:42 am CST, the market broke the first hour high convincingly and immediately formed a bobber set-up. If you will remember, the 1st hour high and low are significant price points. A break above/below that important area can lead to a nice trade. This was the case in this instance.
Ok, so the first couple of trades went by pretty uneventful. The next set up, a trader’s trick set-up after a trend-line break went up 1.6 points before turning around and stopping the trade out at break-even. After a trade is up a minimum of 1.50 points, it’s is my trading style to move my stop to break-even. I hate to see a trade that is up that much end up losing being a loser. This trading style fits my personality. You need to decide what works best for you. Next, the market broke another trend-line to the upside at 13:33 am CST followed by a trader’s trick set-up at 13.43pm CST. The market was extended when this trade happened and the trade was stopped out for a two point loss. Oh well, that is the nature of day trading and why we have protective stops in place to protect our hard earned capital.
As I stated at the beginning of this post, the volatility of recent has caused much conversation among market participants. It is imperative that a trader has a very defined set of trading rules and that he/she follows them to the letter. The next trade occurred after a trend-line break to the downside at 13:51 pm CST. Even-though the price was above the 56 EMA, the strong trend made the bobber set-up at 13.54 viable.
The final trade of the day happened after a trend line break to the downside at 13:54 pm CST. A trader’s trick set-up ended up making our objective.
So that was the way the day unfolded. Today was a bit more difficult to trade because of the large range bars and extreme volatility. There were still a few decent trades and to those trades that didn’t work out as well were managed with excellent money management techniques.
Here’s to catching a Whopper!!
Regards,
Ron
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