For the Advanced Traders among you.
As you can see, the NQ did make a decline into the DP support zone at 12:21EST, BUT the second decline into this zone, that unfolded at a minor DP support with a blue (buy), was the one that interested me the most. The reason for this was that not only did we have double DP support at this level (12:54EST) but it was also on Stochastic divergence. As such, this represented a good buying opportunity.
The trade could have been managed using the ATRStop which would have results in a nice +8R Profit (ignoring slippage and commission), Or the more Advanced Traders among you could have tightened stops as the larger degree DP resistance zone was reached for a +10R Profit (ignoring slippage and commission). Either way, this was a nice setups and one that has been covered in part 2 of the Trading Course.
Thanks, Steve
As you can see, the NQ did make a decline into the DP support zone at 12:21EST, BUT the second decline into this zone, that unfolded at a minor DP support with a blue (buy), was the one that interested me the most. The reason for this was that not only did we have double DP support at this level (12:54EST) but it was also on Stochastic divergence. As such, this represented a good buying opportunity.
The trade could have been managed using the ATRStop which would have results in a nice +8R Profit (ignoring slippage and commission), Or the more Advanced Traders among you could have tightened stops as the larger degree DP resistance zone was reached for a +10R Profit (ignoring slippage and commission). Either way, this was a nice setups and one that has been covered in part 2 of the Trading Course.
Thanks, Steve
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