Last night at 20:00 ET, when the grains market opened for the new day, price gapped up. You can see this on the top chart above, which is a 15 minute chart. The bottom chart is a daily chart. Both were saved after the end of the day.
A gap up is usually a bullish indication. But you can see after the first 15 minute candle, price started heading downward. So I held the short position, made sure the Stop and Profit Taking orders were working, and let the market work while I slept.
Next morning I saw price had reversed and was heading up. I decided to wait for the 9:30 ET market open and see what happens. As you can see the market surged upward and surpassed the previous swing high. This looked ominous after having gapped up at 20:00 last night.
So, given this was a higher risk trade, as I mentioned in the original post for this thread, deciding to exit the trade seemed like the best course of action. Covered the short at 9:39 558 1/4.
On the daily chart you can see we came back down and closed under the 8ema, and also under the 3ema. But today's candle has a higher high and a higher low compared to yesterday. I considered re-entering the short trade, but after today's price action, I think the best action is no action. Not the best idea to trade inside a consolidation anyway. Going to monitor the situation but move on to higher probability setups.
Summary:
YC Dec futures
Shorted: 544 1/4
Covered: 558 1/4
Loss: 544 1/4 - 558 1/4 = -14 * $10/pt = $-140
No comments:
Post a Comment