Wednesday, December 10, 2008

YM Scalp.

This is one I didn't see coming- My larger bias for the short-term (based upon a 15min or greater chart) was to the downside, using that 30min 2T-type trap (after 3 waves on the same timeframe on the all-sessions chart coming out of Friday the 5th December's open) which also allowed for a slightly higher high on the daily as compared to the 28th November's high for a potential 2-wave continuation. So I wasn't willing to hold past the 1st target on this one as 1) I was fighting the larger trend and 2) I'm not able to limit my risk by taking partials as I'm only trading the one contract.

You can see there was Resistance come support using the 60min all-sessions chart on the 14th Nov and the 28th Nov...on the 5min, there was a range that began after the close on the 8th Dec into about 4am EST on the 9th. It broke out, turned around into 6am EST (with a momentum reversal) before selling off back down to the highs of the 5min range mentioned above. Doing so with another momo...I've highlighted the drop in volume on each of the 3 waves of downside on the 1min chart. This shows diminishing interest in taking the market value lower despite making new lows- the smaller range between the successive lows confirms this lack of selling. I waited until the momentum slowed and the price had hit the lower trendline before entering @ 8853 with a stop at 8845. I held it until the first target zone, exiting @8870. It made it up to the pivot resistance zone of 8890 ish (8889) for 4.5 x my risk (4.5R)- I took 2R...

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