I'm not @speedo but I can answer how I'd do it as I am somewhat familiar with that set up: That short is a planned trade. We have one entire trading plan built for retracement entries, long and short. speedo and I trade these a bit differently - same set up but personalized. In this case, I shorted at that level, and I had two sell limits higher in the market. The second limit was filled but the market never retraced to my 3rd sell limit. Stop loss is based on S/R and how much of the previous swing was retraced on the reaction. I typically place a resting stop above the high of the day as a disaster stop (e.g. Trump tweets the virus is cured and we get a 50 point spike) and then allow price action to have me decide to kill the trade with a market order. Every entry has two, sometime three targets based on S/R and resting limit orders are placed at those targets to scale out with profits. I tend also to keep a portion as runners in case we get a trend rather than a trading range. The first target was reached moments ago. Yes, while @Spooz Top 2 was scalping is ar$e off, I held short during that interminable range today. When you define your set ups so that they are unambiguous there is very little "tricky" left in the market. "Tricky" does exist for us - primarily when the market is in a trading range and we have set ups in both directions. We call these "pick your poison" situations. Sometimes we choose not to drink the poison at all and wait for a better set up. Usually we use where price is relative to various pivots, e.g. prior high, low, close, current high, low, open etc. and pick out poison accordingly.
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looking for 2908.25 or so on this leg down before a bounce to complete what appears to be a Rodimus Prime, a volatile reversal pattern. If it doesn't form the Rodimus Prime, and instead goes direct to a Johnny Sokko, then 2709 down to 2670's is tentative target by end of next week. or
Your explanation i feel is exactly what Al Brooks talked about swing day trading. Al mainly scalps ; you mainly swing trading or swing only. It has clearly answered my question. Thank you.
I've also been paying a bit of attention to that QQQ/Nasdaq gap going back to early March. It does seem somewhat surprising that SPX still couldn't muster a tag of the 200d MA (especially after last weeks textbook bear trap).