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[SwingTrader]

Trading Levels for 02.06.2009

[SwingTrader]

Today's 5-min NF chart with relevant levels & probable trades marked.

1. Regular short trade triggered on two closes below LOC. Initial SL is midway between LOC & BULL level. The SL is trailed lower as the trade progresses unti it gets hit midway between S1 & S2.

*** There was a question in shoutbox by one user: after market opened there were two closes below bull level so can a short be opened?
Answer: NO, you will have to wait for a break of a level first before you look for two closes above/below a level. The question could also have been - since there were two closes above LOC can we go long. There is no way to decide on the near term direction before a level breaks. So after market open, do wait for a break of a level.

2. Regular long trade triggered on two closes above S2 level (there was a close below R2 before this). Initial SL is midway between S2 & S3. SL is trailed higher until it gets hit midway between S1 & S2.

3. Regular short trade triggered on two closes below S1 level (there was a close previously above S1). Initial SL is midway between S1 & BEAR which is trailed lower until it gets hit just above S2 level.

4. Regular long trade after two closes above S2. This is a whipsaw trade. SL got hit after it was moved higher one bar after entry.

5. Regular short trade, another whipsaw, hit SL (trade was reversed to long (trade #6) as a long signal was given before SL was hit).

6. Long trade triggered as previous trade's SL was triggered (entry was around 4500). Initial SL was midway between S1 & S2 (incorrect shown on the chart as between S2 & S3). SL was trailed higher until it gets hit.

NOTE: The above examples show probable trades. As I keep saying one needs to adapt these ideas to compliment ones own trading method. Even if you use this system as described above, there is ample scope to tune profit capturing techniques. Do not wait for your SL's to hit, profits need to be captured aggressively.

[ESB52]

your level is rocking,keep rocking

[SwingTrader]

[sandew]

Hi,
in brief pls elucidate long trade # 6
1. please explain in more detail why we went long here - as if to elementary schoool class
2. why did we not book profit at Bear and then LOC level by keeping them as tgt, why wait the SL to get hit.
Thanks Sandew
PS. Your detailing of June 2 trade made me feel good - i wasnt only one wrong in getting SL hit in my trade. Thanks

[SwingTrader]