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Tuesday, November 2, 2010

Keeping it Simple

I've been spending a lot of time just trying to watch Support & Resistance levels and make trades based on price alone, no indicators at all (though the following chart does have vwap (for potential pullback Support/Resistance) and volume on it (for profit taking cues).
This is what I had for AGU going into today:
Price is at the top of a range following a long run-up.  So, price will either break out to the upside (squeezing shorts) or, start to see profit-taking and/or short selling.  If it's not breaking out, then it is bouncing between Support & Resistance.
Because the first 15-min bar was so large (and it was rejected at my upper Support level) I was looking for a short trade, particularly because of the rejection wicks following the Opening bar.
Ideally the short entry would have been within the wick of the 3rd bar, as a result the position did sit through some heat.
I was having problems with my order entry matrix while in the trade, so I took half the position off prematurely, but considering price was at the Low of the day it was a reasonable spot to lighten up.  All-in-all I think I got lucky on my target price and final exit :/

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