14 July 2006
FTSE 100 Futures 2nd Frade - Failed (14 Jul 06)
Longed at 5750.5 added long at 5747, reason : db breakout and m10 20 40 bullish arrangement
Long positions closed (sold) at 5748, reason: dt breakdown and m10 20 40 bearish arrangement cut loss when rebounding to dt nl at 5748
Reflection: While closing short positions is wise in the FTSE 100 maiden trade mentioned earlier in such a set up or situation, but should not have longed at all after that at this stage since m50 100 200 had not formed bullish arrangement though m10 20 40 are bullish arrangement which is not reliable until m50 100 200 form bullish arrangement. This is the relationship between m10 20 40 and m50 100 200, i.e., their arrangements must be the same, directions must be the same (either up or down), and preferably coupled with a chart pattern such as db (breakout for long) and dt (breakdown for short), only until then a potential profitble trade is possible.
Summary:
Long - 1 min chart m50 100 200 bullish arrangement and m10 20 40 bullish arrangement and bottom formation breakout
Short - 1 min chart m50 100 200 bearish arrangement and m10 20 40 bearish arrangement and top formation breakdown
Chart - Use 1 min chart for day trading, use 5 min chart coupled with its m50 100 200 to confirm trend.
Plan - Look for quality trading opportunities only based on "Summary", ignore noises.
Labels: Futures Trading
