Quote from princessa:
i know you don't wanna hear this, but great trade!
Actually it was a bad trade in my book, because I did not stick to my plan and wait for 42.
ES Journal Archive (2006 - 2008)
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Actually it was a bad trade in my book, because I did not stick to my plan and wait for 42.
notice the lack of volume
rule of 10 on cash
10:30 reversal and gap fill
rule of 10 on cash
10:30 reversal and gap fill
options expire and right now there is little conviction based on the volume. Todays on cash close ~ 1530,1520 and even a chance at 1500 but I highly doubt it. So this is why this was high probability short around 1530 cash on the gap up.
If the gap DOESN'T close--i.e. it stays above yesterday's close of 1531 (December)--I'll be expecting an afternoon rally to approach and probably surpass this morning's high. The greater the distance between today's low and yesterday's close, the stronger the afternoon rally.
If the gap DOES CLOSE and the market does NOT rally, I'm expecting nothing. Probably turn off the computer and go to the beach.
If the gap DOES CLOSE and the market does NOT rally, I'm expecting nothing. Probably turn off the computer and go to the beach.
That depends on how large your position is, but a 6-point stop is little too big for me to stomach. Your R/R should be at least 2:1, which means that your profit should be 12 points in this case. At any rate, you shouldn't use arbitrary stops based on points but instead use major "technical" turning points (eg. S/R, trendlines, SMA(50), etc).
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