Wednesday, February 22, 2012

-2pt Continuation Gap =Consolidation all morning and a test of the lows.

Today we had a 2pt Gap down and traded in a solid range for the whole morning past the 3rd time interval, then we tested the lows of 1353 prior to the 9zone where we got a 4pt rally to let me out of a long
Recap Notes:


Trade Selection - Ok, but i missed some solid opportunities to take profit and had to sit thru major retracement. But i was able to manage risk with size at reasonable distances and was able to book goal +1.

INTANGIBLE OBSERVATIONS:
Take your time with the open try to Identify the Day Early- today we traded sideways all morning even after news release and i still was hoping for a trend day??? Mistake that kept me in a long position for 4+ hours. I should have taken profits early had i recognized the day type.

Managing Risk with sizeThis is an extreme defensive decision and not preferred. However this prevents large draws IF each additional entry is properly spaced from the original. (ie. 2+pt away from 1st entry and signaling reversal or turning)