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> An excellent example on the bonds of a news reversal trade had one sold the
> futures as they passed back down through the price they were at prior to the
> announcement, and subsequent failed follow through rally.
> don ewers
Happy New Year to you all!
Having sold the gap to close through yesterday's high, you were ten ticks in profit, then you if bought the rising market, going long through yesterday's high, you faced a strong and fast moving J-Hook against you. While it might have taken you all the way to the intraday low to get out and reverse, giving back all your profit, getting on the move down to yesterday's low as a target with a profit stop, put you back well in profit. The retracement to day before yesterday's low then gave you another opportunity to short and exit MOC with twenty more bucks in the bank.
If you hold to the key res/sup lines you put the odds in you favour most of the time and if you apply a good money management system to that....
Today, the gap to close through yesterday's low netted half a big point coming out at day before yesterday's low. If you just stick to the main lines on the map and focus on the price action as the market comes to them....
Anyway, a jolly good start to the real third millennium...
All the best for First Friday,
Bill Eykyn
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