Tuesday, 19 June 2012

Trades Are Where You Find Them

This DAX sequence is a good example of how a sequence can be traded. There are 3 good trades. I didn't take the 4th with the yellow arrow, even though it looked like a good picture. It was the fourth in the sequence and often fails. If you had taken the fourth trade it would have resulted in a loss of about 3/4ths of the size of a winner.

Also, someone else may have traded this as only one entry, watching the higher lows and perhaps scaling out at the FavFib each time that the extreme was hit.

I didn't get my Euro option trade on yesterday. I had the futures short on and by the time the U.S. ETF market opened, price was way down. I took the profit on my remaining 6E. I'd be interested in hearing from anyone trading options during the European morning. What markets do you trade and how liquid is it? Spreads tight enough?


  1. hi EL
    that sequence started just after the ZEW figures. does the volatility after figures not faze you? can you really trust the set ups within the first 5 minutes after release?

  2. Dan, I trade through all but the most "important" numbers. Important = what everyone is talking about today. ZEW is a regular occurrence. All that can happen is I have a losing trade.