Just had some pretty good R around yesterday's high so I'm looking for a short entry now. I will dump it if the market spends any time above 16.
boy am I lucky today. That came 1 tick from my stop at 185. I think a lower high now seals the deal for the shorts for today. There were three smackdowns from around 111 16/32.
Well since that downspike was bought up earlier today as well I played it safe and took profits. I have another sell order at the top of the current range though.
Nah. Cancelled my order up there. I'm still working on rangebound tactics. Since the highs and lows were rejected pretty strongly I don't want to use my trend trading on purpose.
My statistical work which is actually pretty simple. I'm shorting a failure at yesterdays high. So if you look back in recent months at all the times that trade worked out, you can see by how many ticks it violated the high and still worked out. If you histogram those ticks then you know what you can reasonably expect to happen and still have the trade work out. I also have some other "behavior" rules. When the market behaves badly (it behaves unlike the trade I am trying to capture) I just get out regardless of P/L and don't wait around for my stop to get hit. Actually that's why I closed today's trade. It was getting stuck around the premarket highs. I'd want to see it go though "like buttah".
A hinge (LrH/HrL on evaporating volume). Gotta work out some trading tactics for these too so I'm just watching. What I do know is whichever way it runs out, then 135 marks a potential s/r zone. Since it also corresponds to yesterday's hi R zone, it may become an excellent place to trade off later.