nice short set up
the good thing about haveing the median line as a target(if it gats hit!!)is that it
is sloping down…adding therefore to profit target
stops could be moved down to just above last wash..or at least to b/e
This reply was modified 6 years, 2 months ago by wernluck.
The difficulty in trading it is the immense volatility. Once an entry like that goes 80+ points against you (withing minutes) its difficult to stay focused and believe the trade is going to work out.
If I’m the only one having difficulty in holding total belief in the outcome of a given trade I’d be surprised. Even at small £2 per point when the trade is £200 down within a short period I’m eventually grateful to get out unscathed, thus not holding through for the full move.
That blue wash looked like it meant business as it actually happened.
The rally up to that point lasted 1 hour and 15 minutes with the DOW moving up by 150 points. Only 22 of the 75 1 minute candles closed red! In the last 15 minutes only 2 of the 15 1 minute candles closed red.
Holding short whilst screen watching that move would have been mental torture, even though there was no technical reason to support exiting the trade. (A few points higher and there would have been).
Incredible to think over 3 years of price action on the hourly time frame fits into a pip perfect parallel channel:
From experience (as opposed to proper statistics) I’d say there’s good chance of the lower channel line being re-tested. A 3rd retest is also very likely to break marginally below the channel line before a snap back rally back towards the middle of the channel.
It would probably be more sensible to buy Put options for this as opposed to trying to spread bet it.