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[SwingTrader]

Trading Levels for 26.05.2009

[SwingTrader]

Today's 5-min NF chart with relevant levels & probable trades marked. Explanation for the numbered probable trades follows:

1. Regular short trade - two closes below LOC (previously price had closed above LOC)

There was a question in the shoutbox about the possible long trade after taking the above short trade, there were two closes above LOC after short was taken. I have explained previously that once you are in a trade all opposite signals are ignored until the SL is hit. So the long would be ignored.

When I get an opposite signal while in a trade, my current SL becomes reversible but in no case the trade is immediately reversed before SL is hit.

2. Continuation regular short. Two closes below LOC again after price had previously closed above LOC.

3. Alternative Strategy continuation short. Bar closes below most recent swing low triggering a short (continuation because we would already be in a short trade since #1)

4. Alternative Strategy continuation short

5. Regular continuation short. Two closes below bear level after price had previously closed above bear level.

6. Alternative Strategy continuation short

7. Regular continuation short

8. Alternative Strategy continuation short

9. Regular continuation short

10. Alternative Strategy continuation short

NOTE: One would not take all these trades, they are only to point out all probable trades. The idea would be to hold on to your earlier shorts and probably liquidating partial positions as price keeps breaking down below and keeps hitting lower levels.

[kishy99]

Dear ST Sir,
You said "When I get an opposite signal while in a trade, my current SL becomes reversible ". I couldnt understand what this means. Could you please elaborate on this.

[SwingTrader]

[kishy99]

Thanks ST Sir for the quick reply