Registered: Oct 2011
03-26-12 09:33 PM
Sold Short 126.4555 09:35
Bought Cover 126.87 09:42
Thought it was going to do the same as last Friday but in hindsight it was a different situation. The big gap up led with a first bear bar down on the 5 min chart. It was followed by a smaller bar that pulled back then down one tick past the previous bear bar low. This is where my entry was. However, I failed to realize that this was still counter trend and the gap up in the beginning was just one large up bull bar. Often with counter trend moves, the EMA's lead to suppression of the counter trend legs. I was counting on getting out on at least break even and hoping for the other leg to pan out but never happened. The bars had difficulty getting past and staying past the 10 & 20EMA on the 1 min chart and couldn't make it to the 5 min 10EMA. On friday's chart down spike in the first hour, it was well into trending down and below the 10EMA on the 1 min chart. The key is understanding how much of a suppressor the EMAs are and not trade counter trend on both 1min & 5min time frames. I am actually now incorperating both. The 5 min will tell where one will end up eventually.
A set back but yet I still remain optimistic on the future. As long as there is reason why the bad trades didn't work and it makes sense, I believe these mistakes could be overcome in the long run. I am using a new technique using entries on stops which is different than what I did months ago. It still needs tweaking based on the situation and there are growing pains. It didn't help that I got scared into taking scalps that didn't make a difference.
Bought 127.57 Sold Short 127.89 Bought 127.64
Sold 127.59 Bought Cover 127.86 Sold 127.66