Apr 012012

The signals worked perfectly in the Globex session.  I took the first long for 2 pts.  I didn’t take the short since my bias was bullish and I was done before the second long came.  I’ve found that the signals have worked great in the Globex session lately.

My bias going into Friday’s open was bullish.  I was looking to buy support levels.  The market did an open drive down and there was a good short that set up on a pullback to resistance but it happened right at the PMI release.  The market came down to pre-market support but I didn’t get any signals so I was patient.  I wanted to buy there but I waited for the signal.  The signal came but it was a weak one (strength 1) and then price dropped quickly into the initial support zone.  The setup wasn’t perfect.  We had an OD down and the advance/decline line was looking bearish.  But I was counting on buyers being active there for at least a bounce.  So I got long 1/2 size since all my criteria weren’t  met.

I was going for 3 pts because that put me at resistance and I thought we could make a double distribution day, especially if we retested the low.  Price stalled at the broken pre-market support (broken support = resistance) and I took +2.  It pulled back and then continued higher and my long entry ended up being at the low of the day.

I wish I could have captured more of this move but I played it according to my plan.  Had I had more criteria, I could have entered 2.  But this was a fade trade and that meant I couldn’t overstay my welcome.

With a bit more consistency I will increase my size from 2 to 3 or 4 and be able to capture more of these moves.

Overall, just one long signal and it was pretty timely right before the low.


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