+$1,100 per 1 lot

4/27/2010

In the last few posts and videos we were saying how the ES hit the 1215-1216 are and that was important level if you are long. We have been noting this to our members as well going long up to that level since the low in February. We said "now is not the time to be lazy with longs".

Here is a 5 minute chart of the TF from today. We had a very nice sell signal (2nd set of reds) at 739.00 with a stop at 741.10 which is only $210 per trading 1 lot. Notice from that sell signal the market dove overall 19.00 points to the close. How we trade this is once we get blue bars we trail the stop down to the high of the prior blue bar. We do this the same every time so we have a strict rule that is on the chart. (not written down somewhere because we all know that is not good enough to trade from) meaning: you will not follow your rules 90% of the time unless the rules are on your chart.

So we had a defined exit at the 728.00 on the 5 minute chart for a +11 point winner or $1,100 per trading only a 1 lot! That is not a bad trade OR day to say the least.

The TF did go lower but the thing to note is once the blue bars came in it was a high odds area to get a retrace and that is exactly what happened. Once the market retraced we had another short signal and then a minor short signal within the major short signal. Our rule is once we get blue bars we do not short that low unless a corrective pattern has taken place after the blue bars. Also on the 10 minute chart if we get a blue bar low or high for the day we do not re enter again for that day. The odds are too high that the high or low is in for the day.

After a +11 point trade it is best to bank your profits and walk away especially if we have blue bars at the low. So we would consider the last 2 shorts higher risk that the first but since the blue bars came mid cycle you could still take the last two shorts.

In the last video we pointed out that the TF did have blue bars yesterday at the high of the day. We will make a new video on this again tomorrow.

These are the best trades not only having a good signal on the chart but the pattern was completed to the upside yesterday so our outlook for today was down. So when our outlook is down and we get a great short signal that is when it is time to trade full size and ride it to the exit signal. It is having the odds on your side with multiple things that all say the same thing and that is when you can have 100% confidence in your trading.

We hope you caught some of the short today!

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