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Wednesday, October 15, 2008

NQ - 101508

I have personal things to tend to, so I am quitting early today.

I closed the NQ trade below a few minutes ago. I entered on a break of the weak candle as indicated by the white arrow. That candle tested the previous day's low which had been tested several times earlier this morning (and failed each time).

My initial target was the Fibonacci extension of the previous day's high to the previous day's low. As I looked back at the chart, however, I noticed that the gap from 10/10 to 10/13 had not been closed (see the second chart); knowing that gaps have a tendency to close - and this one was within range - I adjusted my target to the close of 10/10 (indicated by the white dotted line on both charts). Price dropped somewhat slow and orderly through the day to reach that target.

I am not sure where the NQ will go from here, but I suspect the downside is limited. If I was trading, I would be watching for a valid long setup.





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5 comments:

Ron said...

X, great call on that gap level from the 10th. That gave the NQ a 25 point bounce, but it rolled over and closed weak. Not too good of an indicator for the rest of the week.

I was curious, what is your mix of stocks to futures on your trading?

Trader-X said...

Ron-

Crunching data over the past six months it is almost exactly 2/3 futures to 1/3 stocks.

Anonymous said...

u even took the ma off as well? what made u decided to do this?

love your blog

John said...

FYI, X talked about why he doesn't use Moving Averages in comments a few posts back.

QQQBall said...

welcome home X-man!

thanks for gracious sharing on the gap strategies.