Yes, that was tricky to trade. The market was whippy, but the thing to note is that at the time, one has no idea that the bear flag will not reach target. One clue I suppose is the 25 point rise straight after the break, running up the resistance line. Bear and bull flags very rapidly move in the correct direction(usually). tricky call on just the 100MA. It's one of those cases where the call is right, but eventually the market decides otherwise and you have to take it as a losing trade.Your TA was right, but the final outcome wasn't.
Here's an exit strategy I use occasionally which will give Chartman apoplexy!
Enter using CM's criteria. Set a tight stop and don't be afraid to use it. When 20 points in profit, set a 15pt trailing stop and go and take the dog for a walk, or mow the lawn or whatever. This relieves the stress of sitting watching the "wiggly line" walk across the screen and where you invariably get the jitters and end up exiting prematurely. It avoids loads of stress, you get a life, and you would be amazed how often you get back an hour later and you've made $200 - $300 whilst you've been out. And if you've been stopped out - so what? Unless the market has spiked down suddenly thru your stop, you're out at the stop for a profit - and if there is a spike, you won't catch it with your "mouse finger" anyway.
I couldn't agree more.... relieving stress is a major part of the overall strategy. If that "suits you ,Sir" then do it. There's no one strategy that suits all. All I profess to show is an entry level strategy that will get beginners off the ground with maximum probability of success and minimum risk. It's up to the individual to discover themselves from there on in. Once in a winning position, you can manoeuver from a position of strength and afford to play out some "what if" strategies for real, knowing a small loss will still keep you in overall profit. That's relatively stress free too. Playing from a position of weakness is the quickest path to doom, despondancy and a ZERO bank balance.
Personally,I hate wiggle watching.........
Multiple trend lines played an important part today. Another messy day with plenty of opportunities for getting whipsawed. If you had your witts about you again, there were plenty of TA formations available to gain target information. Some met targets, some didn't. That should have helped unravel some of the indecision. The close above a major downtred resistance line may give a clue for next week. The vertical lines are the time slot predictions from a post by Skim yesterday.
Not seen for a while is the early "W" bottom formation, with it's accompanying failed target of 8300 shown. At that failure point, a H&S develkoped that did meet target.(8250)
My only comment about trailing stops is that to optimise things, you need to pick a re-entry point. This may, or may not suit your trading style. Nothing wrong with that per se. "Flip" trading all day is something that requires superb skills.......