October 28 - SKF

This was one of the best trades of my life :-)

The logic for entering this trade is as follows:
1. Price rallies to point A
2. At point B price retraces below R1 and below the 5EMA. That in itself is bearish, but it was early to tell since at this point SKF could form a C&H pattern
3. Price tries to rallies but it fails to move above the previous day high (point C). Bearish.
4. Price retraces again to point D, which is lower than point B. I have to say here that I entered short on the break of the 13:05 bar, but I got stopped out at break even a few bars later. Bearish.
5. Again price tries to rally but it stops below R1: Bearish. Another interesting point here is that the line from D to E is pretty straight and it resembles a bear flag, but the angle is a bit too vertical and also the volume does not seem to confirm that since in fact we have ascending volume, instead of descending volume.
6. All the above describes a situation in which you have lower highs and lower lows. I entered on the break of the 14:05 bar.
The Q's and the financials were exploding so I was quite aggressive (more than I normally am) with my partial and exit points.