Trade #2 - The overall trend was slightly upward biased. However, there was a downtrend channel and prices hit the upper trend line. Went short at around 15:17, right after a very bearish bar formed. In @1682.75. Right after I got filled, a bullish bar and then 3 consecutive Doji candlesticks formed. I should have been alerted by this and close out the trade at break-even or a slight loss. Instead, I held on and was stopped out by a very bullish bar at around 15:23 for -2.00 pt. Many mistakes here, but the biggest is that I had the trend line incorrect. The downtrend channel was already over (already had 2 legs down) and an uptrend one was forming. Prices were pulling back to the EMA and likely have a 2nd leg up when I shorted.
Note to self: Market moves in 2s. Just had a 2-legged correction, so going for 2 legs up at a minimum.
7/25/13 ES chart |
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