Wednesday, December 17, 2008

Attempt at YM scalp

This one had a nice "tweezers top" resistance (highlighted with the blue circle)- two candles with long "upper shadows" or "wicks" showing the bulls inability to hold prices above that level. This became support for the setup. The overall bias is with the bears however. There's an equal move support zone on the 30min all-sessions chart using the rally out of Fri 12ths open until the first few minutes of Mon 15th as the first move. There was a momoreversal to start the range that would last until the Fed around 2:00ET on Tue 16th...the second move, however is open to interpretation- I measured it from around 8510-20 from around 9:00ET on the mon 15th. There is also the larger 60min timeframe resistance of the 3-wave trend exhaustion. All these factors forced me to aggressively move my stop to reduce risk but give me a chance to get to my 2R, 1st Target resistance target of did get there, but not before stopping me out at 8549 under the low of the candle which brokeout of the downsloping wedge or "foot" *wink at Toni*. My entry was 8544 with a healthy stop of 8535 to cater for the erratic movement that I see at this time of the day in the indices.

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