Thursday, November 5, 2009

Trade 182

I've been tweaking some intra-day trading techniques. Well trying different views to make better decisions. I have no added 60 minute, 15 minute and 5 minute ticks, with the TICK indicator to try and find better trends. I am using the RSI indicator as well as the 50DMA to keep things simple.

I continue to use pivot levels, as they are working well to define points of inflection.

Short 5asx@4551.5

1/ The overnight in the US were range bound, I expect ASX200 to be range bound
2/ 60 minute is trending down, lingering around 50DMA
3/ TICK had just turned negative
4/ the price were at r1 pivot level
5/ RSI at all time levels are at overbought

Exit strategy
5/ 4524, initial target - re-evaluate depending on timing of price fall
6/ possibly apply trailing stop loss

Trade result -

As you can see, the price hit my intended target pretty quickly - I was just too slow to pull the trigger to completely capitalise - then I lost 10 points on the bounce. As I trade more intra-day, I am sure I will get better at the exit.