CL Redux

Discussion in 'Journals' started by schizo, Oct 9, 2009.

  1. NoDoji

    NoDoji

    I used to get into counter-trend trades too early all the time because I thought there was a level where they should bounce/fall. When price hasn't yet tested the next support/resistance level, wait for it to happen. In a trend, next levels are tested and broken through. That's what defines a trend. Many traders place buy stops and sell stops 1 tick above/below those levels and play the breakout. You have the added fuel of all the counter-trend traders' protective stops as well to drive the breakout.

    At the point you put on your trade, you were an early long. Price was working its way to the next support level in a downtrend but hadn't got there yet and trend-followers are expecting it to break out to a new low once it hits 82.03. If it finds buyers there (not just a scalper's wiggle, but buyers on relatively good volume), then you either jump in as an early long with very tight stop, or better yet start watching for a reversal signal (double bottom, a higher low, a close above the 20-bar EMA, a break through previous resistance, etc.)

    But if that 82.03 is broke through (it was), expect a new low.

    And if a breakout through a level is very shallow and has no follow through, a reversal is very likely.
     
    #6521     May 5, 2010
  2. EON Kid

    EON Kid

    Long 80.60



    Buy every dip today !!!!
     
    #6522     May 5, 2010
  3. NoDoji

    NoDoji

    Looks like short every "rally". I hesitated to pull the short trigger at 81.32 off the internal DT (failed break thru prev R) because I had that "too low" bias and just missed a 77-tick move from there. :(
     
    #6523     May 5, 2010
  4. emg

    emg

    filled. 80.45 profit target
     
    #6524     May 5, 2010
  5. emg

    emg


    plan on adding at 79.70
     
    #6525     May 5, 2010
  6. NoDoji

    NoDoji

    Careful, CL is not ES.
     
    #6526     May 5, 2010
  7. long 79.30, stop .50, target 80.50
     
    #6527     May 5, 2010
  8. EON Kid

    EON Kid

    Long 79.19 .25 stop trgt 83+
     
    #6528     May 5, 2010
  9. emg

    emg

    filled. average price at 82.02 1/2. profit target at 82.12 1/2
     
    #6529     May 5, 2010
  10. EON Kid

    EON Kid

    BUY BUY BUY piggies :D
     
    #6530     May 5, 2010