Good morning! Just woke up and my eyes are burning. Gotta find the Visine. ADX is above 30 and if we get a early move up then there might be some divergence to initiate a trade. No news out at 10, so lets see what happens.
I see a nice divergence. Only thing I don't like is the open gapped above the high of last week. I have the Keltner Channel at 5.4, so a short entry would need to be within 2 pts of 994.90. Maybe a sell limit order. Looks like this is the first down bar, so will sail a limit order in at 993.00 if 994.90 isn't taken out.
Entry was too early. Probably should have waited for evidence of a non-trend day before entering with the gap open above last weeks high. At least it wasn't stressful. In and out in about 5 min. I'll need to see evidence this isn't a trend day before taking another setup. 1. ADX crossed above 30 at 2:45 on Friday 8/15. 2. Divergence was pretty easy to see once the open 5 min. bar completed. It looked like divergence was starting before the close on Friday. The 8:35 bar looked pretty convincing. 3. First down bar was the 8:40 bar so the entry was done around the open of the 8:45 bar. Market was flirting with being outside the stop loss point so I used a sell limit order to no pay more than 993.00. Keltner width was 5.3 so stop loss was set to 2 pts. 4. Stopped out at 995.00 within 5 min. Entry short 993.00 Exit short 995.00 Profit(loss) (2.00) Risk 2.00 Risk/reward this trade 0 Cumm. trades since 8/1 # wins 8 # loss 2 Profit of winners +41.25 Loss of losers -5.0
Thanks Visiontrader. I setup another screen to watch your indicators. It didn't help with this trade, but I'll be watching to see if it improves the overall method.
I guess you guys were busy over the weekend. I'm on page 53. Can't believe this journal generates so may posts. If there's something I need to clarify...I will.