Wot Next? No:3

Ok, this one may be of interest.

One of my trades - now complete - with entry point and circled exits fairly obvious (the thick black line at around 800 I view as a key support level). I'll explain my reasoning if anybody wants.

However, let's assume you took this trade, you have taken some profit and have the residue of the position still running with stop at break even. You've been out this morning and just tune in to find the ftse down about 150 but ABF up 27 having been higher (see 5 min chart).

Ok, over to you - wot next? and what decisions are you going to make?

good trading

jon

barjon said:

Ok, this one may be of interest.

One of my trades - now complete - with entry point and circled exits fairly obvious (the thick black line at around 800 I view as a key support level). I'll explain my reasoning if anybody wants.

However, let's assume you took this trade, you have taken some profit and have the residue of the position still running with stop at break even. You've been out this morning and just tune in to find the ftse down about 150 but ABF up 27 having been higher (see 5 min chart).

Ok, over to you - wot next? and what decisions are you going to make?

good trading

jon

Click to expand...

I ran a trendline down the 5' Footsie, this morning which served me well. I think I'd do the same on the daily ABF chart. My upper line shows an overbought position, so I'd leave the trade running.

Split

You’re trading off a daily chart and your B/E stop on the balance of your position is already in. So in theory, you’re not going to review your position until end of play that day. So what the FTSE (Market) and ABF have been doing that day at the 5 minute level is of mild interest only to you…

Unless I've misjudged (badly) your B/E stop level, you’re not going to have to make any decisions as your stop has already been taken out.

Did I misinterpret this?

TheBramble said:

You’re trading off a daily chart and your B/E stop on the balance of your position is already in. So in theory, you’re not going to review your position until end of play that day. So what the FTSE (Market) and ABF have been doing that day at the 5 minute level is of mild interest only to you…

Unless I've misjudged (badly) your B/E stop level, you’re not going to have to make any decisions as your stop has already been taken out.

Did I misinterpret this?

Click to expand...

tony,

er, the b/e stop is up at around 890 - the short white line.

Yes, I agree that if one is working from the daily one should not make decisions via the intraday unless that is showing anything really strange happening. In this case that intraday spike subsided but look what happened yesterday The ftse plunged 232 yet abf went up a touch after subsiding from another intraday up spike.

Imagine our trader's disappointment

wot next?

good trading

jon

Looks like a further move lower is on the cards from the failed pushes up on the last 2 daily bars. I'd say move stop to just below the highs of those 2 bars, say 870, and set an exit target at 780.

exit the position in full on the close of business of the 7th day from the most recent chart posted above, i.e another 7 daily bars.......wot happened next??

Have to say, I'm only a very occasional reader of these boards, but these threads are a great find! V. interesting to see how new and experienced traders analyse the same data.

In this case, given the increased general volatility at the moment and the fact we're told we've already taken profit, I'd take a 'modified Queso' stance. ie have an OCO order with stop@860 and limit@820-815. We're told theres support at 800 - I'd prefer the higher certainty(?) of hitting 820-815 (funnily enough one of the original targets) rather than holding out for a few more points and a breakthrough/down to 790.

Having said that I could easily be persuaded just to put the stop in and keep it trailing down should things develop favourably. Nothing like being decisive ;-)

OS.

I see no reason to close this trade, yet.

Split

It seems an age since I wrote that last post. ABF is nearing support, wouldn't you say?
800p? I'd move my stop down to 820 this morning.

Split

Splitlink said:

It seems an age since I wrote that last post. ABF is nearing support, wouldn't you say?
800p? I'd move my stop down to 820 this morning.

Split

Click to expand...

Mornin', Split

You'd be out then and I think I'd be with you. abf got down to 804 early on and bounced back to 825 (now 822).

(btw that was a pretty spectacular last hour on wall street which should follow through today - I'm long ftse for the day.)

cheers

jon

barjon said:

Mornin', Split

You'd be out then and I think I'd be with you. abf got down to 804 early on and bounced back to 825 (now 822).

(btw that was a pretty spectacular last hour on wall street which should follow through today - I'm long ftse for the day.)

cheers

jon

Click to expand...

I am short but stop is close.

Split