Friday, May 6, 2011
30 min chart
Trade probability 1- Case for Long trade - Short term
Down Swing - 5892-5444=448 points.Trend - Down
This will have to be short term counter trend Long trade as Pitchfork is sloping downwards .
My trigger for a long is a price cross at 23.6 % levels of the swing considered which has happened today at 5499.The price can reverse down to test the Swing low.If so, will enter a long at 5485 levels with a stoploss of 25 points , just below the Swing Low .After that price moving forward can hit resistance levels at 5590-5620 levels.Which is at the Red median line.
Trade Probability 2
Price moves forward to 5620 without trying to test the swing low.
1.Price meets 5620 levels , moves down to 5570 which will be my Short trigger level.My entry for Short will be at 5600-5580 levels.Target1 will be swing low of 5470-5440 levels.
2.If swing low at 5443 levels break, then earlier projected levels of 5300-5350 will be the target 2.