Today was a typical day.  The YM paused at SRs several times.  I missed a good move while I was distracted.  Oh well, that happens…

I’m adding more abbreviations to the trade line:

R – risk per two contracts
P1 – profit potential for target 1
P2 – profit potential for target 2
PT – trade profit

Here’s today’s chart:

10/03/07 YM Trades 

Area A – This potetial trade setup was a potential higher swing high, so a short trade would be avoided.

Trade 1 – The market came down within 3 ticks of an SR line and formed a hangman candle.  This trade made targets 1 and 2:

B 14074  X 14062  T1 14094  T2 14111  R 24  P1 20  P2 37  PT 57

Area B – This is a trade that I missed.  While it is not a text book setup, it’s close enough.  The market had a divergence at it’s high, so I was looking for a pull back into an SR to go short (either a lower high or a double top).  What happened was the large down bar started moving down a few seconds after the up bar closed.  If the up bar had closed a few seconds later, it would have been a hammer candle and a text book setup.  Area B was also a well defined head and shoulders pattern.

Trade 2 -Here is a case where support turns to resistance.  You could argue whether or not it’s a valid swing and I couldn’t disagree either way.  I took the trade because it was setup nicely at support with little risk and is actually a setup from TradeStalker called a slinky.  The trade hit T1 and was closed when Trade 3 was triggered.  Here was the trade:

S 14058  X 14030  T1 14030  T2 14008  R 16  P1 28  P2 50  PT 45

Trade 3 – The market was forming a lower high.  This trade was an exit and reverse for Trade 2, but it never really developed.  The market many times makes a good move the last hour of trading but not today.  I moved my stop to breakeven after price looked like it was topping and got out for no gain.  Here was the trade:

B 14038  X 14025  T1 14063  T2 14094  R 26  P1 25  P2 56  PT 0