Friday, August 14, 2009

14th Friday Up, Side, Down, Side


High of the Day: Camarilla H3
Morning Reversal at: Camarilla H3 at 4.00 am
US Market Open Move ended at: S2 at 10.15 am
Low of the Day: S2
Close of the Day: Camarilla L4

Profit 12 R optimized or
Loss -3 R trading all signals

There was an active 10 min long signal in the morning so the direction was clear, but then as usual when its too obvious prices rally too much and the trend stops and reverses. Somehow I was still bullish after my long position was stopped out on the camarilla H3 line, but the next long signal on 5:30 got canceled immediately as prices dropped down. Given the fact that no new short signals came and there where plenty of news later I waited for the news releases on 8.30, 9.15 and 9.55. After the third release I traded all the way down to the 5th 10 min elliot wave target which was also S2.

Conclusion: Like almost everyday in the past I have to say that fundamentals (news) move the markets, technical analysis is only good for knowing how far things can move but not when they move. Given the fact that markets only trend 20% of the time, its important to only trade the first hour after cash market open time (which is for the DAX market the Europe open on 3am and the UK open on 4am and the US open on 9.30) and after news releases.

Tradelist

Exit Rules:
  • Initial Stop is placed at last swing low, so today it was a 20 point stop that helped the strategy to be profitable and not be stopped out too early
  • Trail long stop when price closes above camarilla H3
  • Trail short stop when price goes below the support and resistance indicator (but not during choppy times like 8.30 am to 9.30 am)
  • Trail short stop when price goes through S1 and S2 pivot

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