Screenshot of the live trade...
Update@ 11:44 EU Time
- have to do some work in my company, so I put my S/L slightly above B/E @2758 and my TGT is at 2780
The yellow Fork describes the current most probable path of price. Forks are great, indeed. And adding details to the chart is like seasoning a sauce.
So here we have our ingredients.
See the up-sloping red lines? Know what's their job? Well, they describe the amplitude of the sine-wave within this down-swinging market.
The last one...watch the last one...looks like something disturbs the harmony. Something going on?...change ahead?
We dunno...and we don't have to know!
Because as a Forker you just follow your set of rules. So is it worthless marking out these details?
You really should pay attention to them. Make notes about your observations every time you see something new or interesting. In the long run, this is one edge more you have, a new side-rule for example which can act as a filter, an entry signal or a warning sign.
So, pay attention to these details use these observations as a takeaway from your chart work, even if you don't get a trade right now.
Please leave me a comment if you like and of course I'm glad to answer your questions.
Since many Traders fail to manage their trailing stop, I think it's a good point to discuss with our live Gold trade.
In this video I give you some practical Ideas on how to manage your trailing stop in different ways.
Either to book profit or enhance your chance of not getting stopped out too early. But also how to beware yourself from the mistake, to let a profitable trade running into a loosing trade.
If you have questions, send them in and post your comments below.
Happy stop trailing §8-)
Because NFLX works so nice, I re-established a trade in here.
I sold a Naked-Call and bought a Calendarised Debit-Spread, giving me a very wide profit range, even if Volatility kicks in or slows down.
The position is doing good so far (up round $250 p.c. ) and I expect price to drop down to the L-MLH, maybe straight, maybe after a pullback to the CL.
I closed the whole NFLX (and RUT) positions for nice profit way too early, but with a reason.
The S&P 500 dropped like a rock and volatility has risen remarkable.
For Options Traders, this is heaven to establish new positions.
This means I closed out NFLX to make my money work with more efficiency in a higher volatility environment by establishing new income trades that pay more.
To most Traders, this thinking is not really as fun as learning a new charting technique.
But let me tell you this: A higher ROC (Return On Capital) is vital for optimized income!
That said, I wish you all a great weekend.
The last days FB dropped like a rock.
It stopped at the CL of the long term Fork where I see confluence with the A/R set.
I'm going long with options.
Below you also see the whole Fork and how it is setup.
Below you see FB, having a hard time to trade back up to the U-MLH, or even to the GAP.
If this trade is closing negative for one day, then I close the trade.
More to follow...
Closed FB with a loss of round $200 p.c.
In hindsight I could have made over $300 per contract on the rise after the hard drop the first day.
But hey, it's just a trade and more important is, I followed the plan.
Crude has arrived at the WL1.
The move to the upside was very harsh.
And if you look close, you see that it was a fast exponential move too.
Most often then not, such moves lead to a fast drop, when all the Bulls are sucked in...
It's a nice confluence point up in here, so I act and go short.
Aaaand I got toasted immediately for a loss of round $500 per contract.
How do I deal with this now?
The loss was calculated, possible and - in fact fair, because I acted far too fast.
The CL of the up-sloping bigger Fork is broken to the downside and I got my retest on it today.
I like this short for a target of at least to the CL of the reverse Fork, or if the market is showing momentum I consider to the partial profits on the way down and wait for the final target at the L-MLH.
I enhanced the chart with two more possible CL's.
The first is the very steep white Pullback-Fork.
This CL is the first which could provide support for RUT.
The second one (magenta) is more of a A/R Set.
If price is able to break the first CL of the Pullback-Fork, then the second A/R CL is target for at least partial profits.
As I wrote in the NFLX post, I closed the whole RUT position too, just to re-apply the capital on higher credit trades (...higher volatility after the S&P 500 drop), which I do most of the time (...my core strategy is to trade for income).
I must say, I hate the RUT, even when I made over $1000 in profits p.c. on this trade.
Why I hate the RUT?
There's always so much slippage and the fills are horrible.
But RUT has most of the time the higher Vega (Volatility) then the other Indexes.
So my capital works on "steroids" so to say ;-)
However, I closed the position yesterday too and my $-sheeps feel the spring, spawn the heard. §8-)