Thursday, February 8, 2007

Russell 2-8-07


The premarket on the Dow showed the early direction of the morning by gapping down from yesterday's close. After a large bullish move yesterday, the Russell focused on consolidation this morning ranging between the 818.00 and 814.00 value areas of yesterday.

The first trade of the morning was at 6:35 this morning short reversal signal at 817.20 for +1.8. The second trade of the morning was at 7:01 long reversal signal at 816.00 for -.07. I've really been focusing on my entry and exit mechanics and the first trade of the morning really exemplifies this. I was a little late on the entry of the second trade but I feel I exited the trade well.

Net for the morning +1.1
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4 comments:

Anonymous said...

1st trade short reversal entry was based on gap down open, red blue dots, or other ?

thanks,
jesse

Lord Tedders said...

Jesse,

The first trade entry was based on the first bounce off of resistance (from yesterday's close), RSX returned from being overbought. That was the setup.

The gap was not a factor in my decision, although I did note it. As an aside, I've noticed that gaps of more than 2 points don't tend to reverse immediately, usually they go to test new lows first.

Edward

forex said...

Great article

I hope everybody read this article

Thanks

Eternum said...

Hi Edward,

Is there any way to contact you directly via email? I have a question regarding your post on TraderFeed (" Adding to Your Edge: A TraderFeed Poll")

My temporary email is JKPJCDTNSIDY@spammotel.com

Thanks!