Wednesday, November 17, 2010
This one is for Jason.
The support area from the QE2 announcement day was clearly at 1328. So, we use that as a place to buy. You go in with 30% of your total size and see if it holds. Yesterday, when we went into the spot, the price was only there for a quick second. That is the second indicator that tells us we had a good entry. Also, we've come off almost 100 points from the high which is still a good size move to consider before going in for a trade. ie what percentage of the contract does that encompass - 8% or so, so it's a decent retracement. Lastly, the 100min chart shows we are still wedging higher and making higher lows...
The 3 min chart shows that we are holding the spot and wedging higher. So, I'm long my next 30%. Once we start to head higher, you finish the entry with your last 40%. I bought 1329/8 and 1335 as the lows are gettting higher. I"ll buy again if we break out past 1344, come back and HOLD. Then your trend should be in... Out target needs to be around 3:1 of our entry price vs our risk. That puts is in around 30 points or somewhere in the 1360's. The stepping process of entering trades works on 1min charts for intraday scalps and on the 60 min charts for swing trades. I don't take position trades as I don't trade on fundamentals.
*EDIT* got hit last night on GOLD - 1364/5 - + 31 points.