Wednesday, December 16, 2009

Trade 215 - ASX day trade

Trade ASX index for the first time in a long while, as all the stars for a perfect trade had lined up.

1/ Very strong resistence 4690 level
2/ Overnight prices were weak 0.5%, and ASX was moving higher on positive economic data - the key was to fade the move
3/ TICK was constantly negative

1/ The price on the 1 minute chart had show a breakout below consolidation of price, and had broken the trendline and the 50MA.
2/ the RSI on all the charts had hit 70
3/ the 15 minute was forming a bearish formation

Entry was made @ 4679.5 and as the price moved in the way that I expected, I had moved my stop to the normal breakeven price of 4678.5 - This move proved to be very costly, as the price retraced to 4682.5 before falling to my target price of 4660.5.

Micro-managing this trade cost me about 20 points, and I'm probably thinking that next time I will keep my stop loss as it is at least a little longer, to allow the price action to develop in a slow market.