Chip,
Thanks for the response. A couple thoughts.
First off, we were near a limit down, and in fact, hit the limit down. Rarely do the spoos bounce right after a limit down. I have seen it, but it also seems to break the limit down price first. Remember what Patrick says. He says if the spoos or the mini hit the same price two or three times, the level becomes a very obvious one for break. Therefore, he always looks for that level to be broken. Looking at the 6 min chart, there was an instance of this at 1523.25, a double bottom, broken a short time later. Then again at 1521.00, where 5 6 min price bars had held that level, the limit down level. It was almost a slam dunk to be broken before an upside was initiated.
I cannot find your median line at 1421ish. In fact the two forks I had up were the following:
10/2 13:30 L
10/3 14:00 H
10/4 10:00 L
That midtine was hit on 10/5 at 10:00 and again at 14:00.
Due to the steepness of next fork using the following pivots, I instead drew it using the Shiff line and had the midtine at 1438 which was busted solidly at 10:30 by a very long red candle. It bounced back for a test at 11:30, the perfect shorting opp for the ride to the bottom tine at 1416.
The pivots were:
10/3 - 14:00 H
10/4 - 10:00 L
10/5 - 14:00 H
Anyway, I am glad you were safe. I guess I just did not see it and was curious what got you to buy there. Always something to learn. Thanks.
BTW, what do you use for stops?
-scott |
