The short trade triggered after we fell below the Weekly Support level and traded down into the next Time and Price Room at 1146.
Due to the size of the initial XTL bar it would have been difficult to take this trade on the 60 Minute Chart due to Reward-Risk, however when you know that the market is due to sell off (as we took out Weekly Support) it is up to the trader to find a trade to support this move. By moving to a lower timeframe we are able to lower our Dollar Risk per trade and still take advantage of this move. Here I have a 15 minute chart with a XTL Breakout trade which uses our standard 6/4 MA for the trailing stop.
At this point the XTL trade would be stopped out as of Friday afternoon. The next thing to look for is either the Type One Sell or the False Bar Stochastic Trade if the market continues to retrace.
Ron Wheeler
eSignal Learning
Ron, can you update GOLD
Posted by: yuqing | December 28, 2009 at 06:07 PM
All quiet on the blog front. I hope its only because the esignal team in on holiday?
Posted by: anthony | January 16, 2010 at 10:48 PM
Anthony, it seems like a long holiday. Can I get a job in esignal?
Posted by: Chris | January 17, 2010 at 08:06 AM
Very late updated blog
Posted by: samir ghadiali | January 18, 2010 at 06:43 AM
Gentlemen,
We update this as we can. Most of the team has been on holiday since Christmas. We will endeavor to bring more frequent updates in the comming year.
Posted by: Craig | January 19, 2010 at 10:10 AM
Hi Craig,
The sound dropped off on the last member event. It would be helpful to see another look at the SPX. Would make a good blog post for the New Year.
Posted by: anthony | January 20, 2010 at 06:13 AM