I've made two short trades this morning in the ES. On the first trade, prices touched my 6 tick scalp goal, but I did not get filled. It bounced quickly, so I covered the first trade at BE trying to salvage two ticks, but I was not quick enough. Turns out I should have held the trade, so I jumped back in short again and made 13 ticks. So, two short trades, one a BE trade and the other +3.25 points.
this (what MAX said...) happened also right now in the 6E (Euro Future...). A break of down TL after a HL... It's generally a nice indicator that something will happen. Do you guys trade these TL breakouts aggressively with a small stop or do you rather wait for a confirmation of the new trend?
I wouldn't trade the break of the line, but rather wait for it to pullback/retrace and enter on that with right entry trigger. I feel its safer than the actual break. Max
I'm watching that same move, and that's excatly what I am seeing. If it plays out, just be aware that there was a DB not far below that area, so be prepared to act it something happens there to bounce prices.
I didn't take this trade because it didn't give a good entry with enough room to profit before reaching the DB sup area, and as expected, it did bounce.
Here's the trades Max. As you can see, I should have hung on for the rest of the move. Could have picked up another 3+ points. That's what I need to work on.... hanging on longer.
I won't trade the break out either. I'm either in prior to the break out, or I'll wait for the pull back. Very seldom, if ever, would I enter short near a supporting TL, so I would most likely wait for a retest and see if it fails. If so, then I'm probably on board unless there might also be a strong S/R area just below as well.