This was a wide gap down, so I am not sure yet if it is the right thing to trade these ones. Anyway, I had the chart on my screen so I followed the action throughout the first hours of trading. Although the OR bar printed a lower shadow, and NFP tried to rally in the 2nd and 3rd bars, it was clear to me that buyers did not have the power to move the price above 30.50. NFP continued trading sideways towards the declining 5 EMA, and at 11:15 it printed a strong bearish bar. IMO this was not a dummy entry, but I was quite confident that NFP would break down after that so I entered at the low of the 11:15 bar. NFP broke down and continued moving down slowly until 1:30; at that point the buyers stepped in to minimize the damage. I exited as soon as bar closed above the 5EMA. Not a great +R, but a profitable trade.
1 comment:
Nice trade. I was in this one as well. If you get time have a look at my new blog. I trade mostly TraderX trades so we looking for the same things.
http://traderam.blogspot.com/
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