Info

1 was stopped out of all twenty-five contracts at 37790. My loss was $2025 including costs. Prices had now formed a Ross hook. I placed a sell stop below the hook.

I did not place a sell stop below the correcting bar because I needed 2 ticks (ten points) to cover costs between the point of the hook and one tick below the correcting bar.

When there is not enough room to cover costs, I refrain from taking the trade.

Prices made a doji on the next bar, so I placed a sell stop under it just as it was closing This was the second bar of correction.

I placed a sell stop there because if I were to be filled 1 tick below the low, there would be enough room for me to cover costs by the time I reached the point of the Ross hook.

When prices made another doji, i could clearly count four out of the last five bars in congestion, with the last four closes within the price range of the fourth bar back. I canceled the sell order under the previous bar's low, but I kept a sell order under the Ross hook. I also placed a buy order above the small double top made earlier.

The downtrend was no longer intact. I was looking at congestion. The Ross hook formed the lower limit of the congestion, and the small double top formed the upper limit. A breakout of either would give me a trading entry.

I was filled short on a twenty-five lot at 37770. My stop loss was $250 per contract away, and my cost covering objective was 37760. Prices went as low as 37765.

The next bar went a bit lower, enabling me to cover costs with five contracts at 37760. I netted $100 for my trouble, and pulled my protective stop to breakeven (b/e) as the bar closed.

Prices dropped even further, making it possible for me to begin to protect half of the unrealized profits. I placed my stop at 37750.

Budgeting Tips For Families

Budgeting Tips For Families

Learning all about budgeting strategies for busy families can have amazing benefits for your life and finances. Learn financial control with less effort and more results.

Get My Free Ebook


Post a comment