Since the trade went in the money by 7 points, you basicly let it go against you by 10 points. I would short 1282ish around 3 pm...
Pretty much just moves straight down from the highs of 75.50 to 65.50 around 3:50 AM EST. The biggest intervening rally took place around 3 AM EST of 2.50 points. I didn't think you would reset for a small rally like that. Maybe I don't understand it yet. OldTrader
Since we are gambling why not SELL@83.25 as that is 2 times 10 low? Or on the 9-11 entry method SELL 82.25 and 84.25...
Check the chart, 75.5 would have been stopped out at breakeven, because it was hit twice with a 72.5 in between....(thus the SL moved to breakeven)
That advice was based on chartpattern recognition. Days like this tend to top around 3 pm. So far the top was at 1281, 2:52 pm, so I was 8 minutes and 1 point wrong... (so far) Also since we had 2 reaction lows at 69.5 and 72, the 81 top could have been an in between kind of entry...
I'm surprised more charts haven't been posted here, for such a technical/visual strategy. What I'd really love to see is volente post a 2-day chart from a day similar to today, with chronological notation of valid reaction points and re-sets. The big question that still remains with me is : when do you shift your entry point from being 10 from an "outside" peak/valley (i.e. - HOD/LOD) to being 10 from a lesser but more recent one, and what exactly qualifies the latter? For example, all morning I was looking at 73.00-74.00 as a short entry r10 off the 9:30 low 63.25. LOD +10.00 ... seems obvious. Some of you re-set to a 75.50 entry after the swing low of 65.50 at 11:00. Well this time they both worked for about 3pts each. Which low was really the more significant?
Not to mention 80.00 was also R1 (S1 to R1 day ...), a 2-day channel top, and the 200EMA on the hourly.