Live Cattle Megaphone - Exit

3/4/2022 15 minute 10:52 ET

On March 4th at 10:59am ET I sent this Tweet with the 15 minute chart above:

"Sold our long April Live Cattle Futures position for a small profit. Price dropped to far at the open. Sold it on the bounce. Details later."

The ideal low point would have been the 127.2% Fibonacci extension at 136.405. But price shot right through there and came close to the 161.8% extension. Then retraced upward but bounced off the 8ema and headed back down.

This didn't look like it was honoring the megaphone pattern at all. Thus our thesis was violated and we had no reason to stay in the trade.

The original buy order described in the previous post was filled at  9:30:13 ET for 1.050. I sold it for 1.125 on the bounce at 10:52:40. So, the net was:

1.125 - 1.050 = .075 * $400/pt = +$30.00

At today's close on 3/9/2022 the Daily chart looks like this:

3/9/2022 Daily Close

That is still not right for a megaphone trade.