There's nothing much to analyze anymore really.
In an UNNATURAL market like today's, the best that I can do is to PLAY BY EAR.
Given that DOW, S&P and RUT gained 2. 58%, 2.05% and 1.95% respectively and NDX lost a mere 0.3% in the last session, there ought to be some form of follow through today.
So, if ER2 doesn't break above 742.4, I'm shorting it all the way to 723.
In an UNNATURAL market like today's, the best that I can do is to PLAY BY EAR.
Given that DOW, S&P and RUT gained 2. 58%, 2.05% and 1.95% respectively and NDX lost a mere 0.3% in the last session, there ought to be some form of follow through today.
So, if ER2 doesn't break above 742.4, I'm shorting it all the way to 723.
ER2 30-min
2 comments:
I dont believe the ER will break above that, these levels seem very unsustainable in the market...i am as bearish as you are in this market.
However there are a lots of resistance points along the way down, how do you deal with that?
Then I scalp :-)
Which I did (just posted result for today).
I usually don't hold a trade if I don't get a good entry before 830. For today, I wasn't sure if ER2 was going to test the 742 resistance. It traded below at 739 for while. So I had to wait for 739 to be tested, while keeping in mind that I still had 742 to worry about.
By then, ER2 was already too far away from 742, but not exactly in a confirmed downtrend. My risk to reward ratio was no longer appealing.
So I decided to scalp using 1 and 5 min timeframe.
I have always paid more attention to the resistance above when I go short. That's before market opens.
During market open hours, I use Fib for support and resistance.
The support I've drawn on my 30min charts are only important to me when I plan on taking a longer trade (with profit target of 5 - 7 points per contract).
When I scalp, my max target per entry is 1 point (of course when there's a strong move and I get more than 1 that's great). It's not difficult to get 1 point out of a 3 to 6 point for each of the waves (on 5 min chart, first and third waves offer the best plays as 5th is sometimes truncated...5th wave is usually completed at around 12 on a good trending day).
Hope I haven't lost you completely..
Will show a chart on your forum tmrw. A picture is worth a thousand words. Right now my neck's really killing me :-)
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