Friday, February 13, 2009

Afternoon Rally 12th Feb.

Following on from the mismanaged 12:30ET reversal, I was passively going through how I would manage the trade even though I had long since been stopped out. It was going into those lows, detailed in the ES 1min chart, that I noticed some serious technical support...

There was the equal move intraday. The final low not also completed an equal move on the hourly, bringing it squarely into the 2nd of Feb low. The slow down in pace (shown in yellow) added some extra weight to the setup.

After seeing all the above, I quickly went in search of a momoreversal in a stock to take advantage of this bias. I found COP. It too had strong multi-timeframe support in the form of 3 wave trend exhaustion (on the 30min it was testing...on the daily it was triggering one)...the various lines intraday show entries, stops and exits.

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