Recap 30 Nov 2006
Excellent trading yesterday. It looks like I nailed the trend as well as the numbers as well as the fact that prices would not fail when they approached 114 00 at 0830.
To be honest, deciding if you will have a failure of a retracement or a continuation of the trend is one of the hardest things to do. However, looking at past price behaviour, volume, price levels, reports, etc you get an intuitive feel for things after a fashion.
The beauty of the first buy at 114 02 is that at most I would risk 4 ticks on the trade, i.e. a stop at 113 30.
Finally, with my strong bias to the upside today, I would never consider a short and would only exit my positions for a profit, looking to get in again on a pullback towards a price level.
The only other trade I see today is at 0930 on the 5 min bar between 114 03 and 114 00. I didn't take it as I had already made my money for the day and I have to study for the CISSP exam.
The important things to learn from today are the following:
1) Learn to spot when price will not fail when coming up from the bottom.
2) Learn to trade only one side of the market when the market is screaming at you that it wants to go only one way. Today you knew this betweem 0825 and 0855 and you were given another sign at 0930.
