Today a thought of the scenario in advance:
- yesterday's slump of 184 points down in 1 minute in the Dax future was most likely a fat finger problem - so
the rule does not omit a trade as that mini crash (which never occurs in Europe - LOL) is not counting.
- price came back up into the cloud again
- 61% retracement is resistance @ 9293
So my prediction for today: a nervous day - price up to 9293 and then a fall south to get out of the cloud
with some tempo. US numbers in the afternoon 14:30 - this is the time to get out.
Dax short 09:30 to 14:30 (will be confirmed or revised 09:25)
entry @ 9268
exit @ 9278 stopped out
result -10 points
Edit: looking back:
This trade was not developping as intended - I had to put a real tight stop as I was away from the screen.
Coming back it was no surprise to see prices rising again.
Two things to learn about todays's market movements:
1) Price was further in the daily Kumo and ended on upper line.
2) More important: US numbers at 14:30 were making a market shaker of more than 100 points...
So it was evident to get OUT before these numbers...
Last edited by GFIs1; February 7th, 2014 at 02:21 PM.
The following 3 users say Thank You to GFIs1 for this post:
I am in and out as planed. Before the news, the trade was in -10-15 tick, so I took my chances for a 2 folded trade. If the spike is going against me I would have been lost 20-30 tick (based on slipage) but I managed to win +25 tick, with a take profit target. Anyhow it was a 1:2 R:R ratio, I would take it anytime. If it would have been a winner already, I would get out before the news hit, but this time, it was a better play I guess
Thx GFIs1, and have a nice weekend
SL: @9302 (after a nice round number
maximum harm: @9297 (round number has been saved my ass this time, good SL management is always welcome:P)
overall +22 tick, with a very high risk factor to fail...
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Like the title says I'm no expert but trade the gap and once the gap has been closed I wait a bit and trade the opposite direction. Yesterdays close was 9256 todays open was above that so I went short first thing