Great day. With a bit of trickery, I managed to extract 330 points net today one loss of 17 which I should really have held. This was done with a bit of help from ES , anticipating tops and selling, and buying back in after the pullback. NOT to be recommended for beginners. Still, here's the punch line. Following the 100MA rules you can clearly see there were two "safe" entries. These are where there is a clear bounce and pullback to the 100MA on a break. These entries were both at 7840. Playing the 100MA rules, the ONLY exit was at the penultimate peak at 8140, giving a clear 300 points . NO stress, NO hassle, feet up job. So was my extra 30 points worth the effort.? NO. It wasn't...... Had the market been a little less volatile earlier on, I would undoubtedly ended up with less that 300! But then I did enjoy the excercise....
In the next chart I'll point out a couple of things of interest. The first half today was just boring straight up.
Reward to risk?..... It didn't take long to calculate the target of 7990 from the pullbacks. The risk is always 20 points or so below the 100MA and we got in right on the nail. So Risk is 20. Our final exit was +300 so R/R was a staggering 15:1 . Even using the early target of 7990 we get an R/R of 7.5 :1
Part of my scalping excercise today was looking closely at the relationship between the move in RSI against the move in point of the DOW ( discussed last week) to determine the strength or weakness of the various moves. I can report that it looks to be a very good measure of what's going on..... bearing in mind I'm Spread Betting and getting hit by the bias most times, the 330 points could have been another 100 without bias.......
In the next chart I'll point out a couple of things of interest. The first half today was just boring straight up.
Reward to risk?..... It didn't take long to calculate the target of 7990 from the pullbacks. The risk is always 20 points or so below the 100MA and we got in right on the nail. So Risk is 20. Our final exit was +300 so R/R was a staggering 15:1 . Even using the early target of 7990 we get an R/R of 7.5 :1
Part of my scalping excercise today was looking closely at the relationship between the move in RSI against the move in point of the DOW ( discussed last week) to determine the strength or weakness of the various moves. I can report that it looks to be a very good measure of what's going on..... bearing in mind I'm Spread Betting and getting hit by the bias most times, the 330 points could have been another 100 without bias.......
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