I Spy a Large Trading Opportunity–How You Can Too (Part 6)
06/23/2008 12:00 am EST
Price came back up and tested the Upper Sliding Parallel, leaving double tops again and in the process, my limit sell order at 117 9/32 is filled. This bar also closed in the lower third of its range, with great down side separation, which is again a sign that there are sellers in this market at higher levels-a sign of weakness.
Once I see my price print, I check my electronic platform to make certain that my limit sell order was filled. Then I check that my stop loss order is in the market. Finally, I can enter my profit order, my limit buy order at 116 11/32.
Once I am short, my mind begins to manage the potential outcomes of the trade. I draw in a green narrower Median Line and its Parallel Lines, because this set of lines will give me a much clearer prediction of the probable path of price if I am correct and price moves lower from this level.
More in Part 7 tomorrow.