Reply To: Technical Index Trading & Analysis

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#3358
RS2OOO
Keymaster

Hi bracke,

I hope you are well and your trading is going well.

I’d been watching FTSE for ages as you know, and knowing I was going away thus could not do anything silly like close the trade prematurely I decided now was the time to take the plunge with stops beneath the last major swing low.

Instant profits were not on the agenda, I didn’t mind waiting Months, just that we’ve had 3 higher highs since October as well as an ascending triangle breakout which subsequently retested the middle of the previous trading range (9th March) before rallying again.

As for the number of points it had rallied over a short period, that was no deterrent having seen so many times before big moves that just keep going and going (which leads to so many entering short on the incorrect pretense that its “gone up too far”. I believed from that point my stop loss could handle a retrace but would activate on a break of the previous major swing low. Clearly that turned out to be wrong.

Looking at the chart now and my stop was taken out by a simple “wash”, designed to do exactly that!

Quite upsetting when these things occur, and yes, hindsight does give a different view, i.e maybe the stop should have been below the daily 200 MA.

My upside target is/was unlimited, ideally looking for 7640 region sometime over the next 12 Months.