On the Daily chart above, of December Corn futures, I noticed the following:
- Completed AB/CD
- Bearish Harami candlestick pattern
- Bounce off Trend Line
- High Stochastics
- Close below 8ema & continuation
So, I entered a short position using the YC mini-contract at $10/point, rather than the ZC contract at $50/pt.
Set the Target to the 61.8% Fibonacci retracement at 531 1/4. Actual Target will shade the mathematical Target by a little to account for slippage and Bid/Ask Spread.
Used a Stop just above the high of the second candle back, that also gives close to a 1:1 risk:reward ratio. A better Stop would be just above the previous swing high at 586, which is also coincident with the downward angled Trend Line (thin white line). But that would give a terrible risk:reward and I'm concerned we may get a bounce off the 20sma (green).
Summary:
Entered: 11/5/2021 14:15 ET at 553 1/8.
Stop: 573
Target: 532
Risk: 553 1/8 - 573 = 19 7/8
Reward: 553 1/8 - 532 = 21 1/8
R:R = 21.125/19.875 = 1:1.06 not great but acceptable.
No comments:
Post a Comment