Price had been trending up until it reached Open price. Congestion followed.
Noticed a double top with the price rushing below EMA.
A 2EL near the top seemed like an idea place for a failure.
Scalped 4 points on 2 contracts.
But, we are in a range.
Was it better to avoid this trade?
Thoughts on F2EL
Thoughts on F2EL
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Re: Thoughts on F2EL
[Note the marked trade appears different from your description: trading range and rejection was expected near the top -> big down -> big up -> big confusion so not a surprise]
Marked Trade
What I like :
1. Your trade is taken after the 3 bear bar selloff, and then the stronger 4 bear bar reverse. Good downward pressure building
2. From the 4 bar selloff, we do expect another test down.
3. The bull bar which follows only reaches 50% of the range of the 4 bear bars so approx area of potential.
Areas of concern:
1. Failed (anything). Failures attract people because it makes them feel smarter. This is a 1st entry long attempt to retest the previous high. Failures take a bit more practice.
2. The signal bar sucks. 50% of the bar is the lower tail which is rejection, upwards. The trade has to travel almost 1/2 of the bar to enter with a stop. Much higher risk for many reasons then.
3. Bear bar does not tick higher than bull bar. This makes it an inside bar and lower probability.
4. Selling into potential support at 4443. Notice the continued rebound from this line.
There was a bit of risk on this one that hopefully the points above point out.
Hopefully helpful and good trades to you!
Marked Trade
What I like :
1. Your trade is taken after the 3 bear bar selloff, and then the stronger 4 bear bar reverse. Good downward pressure building
2. From the 4 bar selloff, we do expect another test down.
3. The bull bar which follows only reaches 50% of the range of the 4 bear bars so approx area of potential.
Areas of concern:
1. Failed (anything). Failures attract people because it makes them feel smarter. This is a 1st entry long attempt to retest the previous high. Failures take a bit more practice.
2. The signal bar sucks. 50% of the bar is the lower tail which is rejection, upwards. The trade has to travel almost 1/2 of the bar to enter with a stop. Much higher risk for many reasons then.
3. Bear bar does not tick higher than bull bar. This makes it an inside bar and lower probability.
4. Selling into potential support at 4443. Notice the continued rebound from this line.
There was a bit of risk on this one that hopefully the points above point out.
Hopefully helpful and good trades to you!
Re: Thoughts on F2EL
Thank you for the feedback.