Thursday 7 June 2012

Short TF trade Closed for 100 ticks profit

Well, this played out nearly as expected.  I do not usually take a trade on the opening of the market, but the set up was virtually as I had expected, i.e a break above the high of the large volume candle with RPM on the 600 Vol chart. 

We had climax volume break on the 5 min chart. After the first RPM down bar, I was tempted to short as explained in my previous post, but waited and then we had another 2 bar reversal set up with the next two bars on the 600 vol and this time I took it, with a SL 2 ticks above the new swing high (12 ticks). 

I did have a target in mind of the 767, which was the low of the high volume bar, but there were no RPM up bar there, so I let it continue.  However, I saw HVC bars on both the 600 and 300 ticks charts at a throwback line and decided to exit at that point for 10 points (100 ticks).

There was a possible re-entry after price had retraced with a RPM down bar on the 600 & 300 tick charts, but I declined, as I did not want to give anything back in case it went against me. Such a pity, as at the time of writing this, there was a possible 60 ticks to be had. Can't be too greedy eh.

Here are the charts.





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