Before market open
- TA on SPY - strong support at 128.50 back tracing from Aug 2011 breakout to the south; still on channel support ; ascending triangle breakout ; previous trading day isn't a real bull, got pushed up went sideway.
- Marketwatch headlines - nothing major
- Forexfactory - No major economic data
Sentiment : A little bearish correction to the downside
TOS :
- Open SPY option chain to look for 2 Put contract
- Set stop lost
- Drew additional support/resistance lines on 1min candles chart
- Added previous trading day, open, high, low, close
- Remind myself on the 2 rules
- Never buy the high, never short the low
- Wait for confirm trend
Saw an opportunity for an entry at the orange circle - bearish engulfing. Buyers sudden rush. Waited for next candle to confirm. Clicked Buy and didn't get a fill. Thought of chasing the price once but it just went too fast before I can react. So chill myself and told myself that there's always another opportunity. At the same time that kind of psychology I have to manage -you know you are got the right direction and didn't get a fill and the price just went nicely along your direction.
Invited my friend [Patience]
SPY finding it's support at 128.50 zone. Prepare myself for bullish entry.
I was presented with another opportunity - blue circle. Both rules fulfilled, waited for the next candle and bang a pretty bullish one. Clicked Buy. Filled.
Checked on MACD,
On 1 min chart - MACD blue line above red (probably take a while for MACD traders to come in)
On 3 min chart - MACD start to form crossover
It climb slowly as I waited. Smaller wave make bigger wave.
Next, prepare to sell- Hit $5 profit sell 1, trail 1 for $0.05
- Profit : $18 | Net P/L : Profit - Commission = $18 - ($1.25 X 2 ) X 2 contracts) = $13
Retrospect
Blue - STC 1 contract and trail stop 1 contract
Red - Got trail stopped
Ratio : 4/4
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