The NQ put in a double top at yesterday's high. I entered on a break of the bar's low indicated by the arrow. I was hoping for a better candle - a hanging man or a shooting star; it was somewhat mediocre instead. But it was a narrow-range, inside bar at strong resistance.
I was watching the trade closely to see if it broke through the short-term trendline (yellow). Once it broke that level, my target was the 50% retracement of the previous day's low to high. Price chopped around and drifted lower most of the day, which actually worked in my favor. Had the NQ reached my target earlier, I would have covered my position and moved on. But it did not approach the 50% retracement until the last hour so I decided to see how price reacted to that level.
As luck would have it, price sliced through the 50% and fell sharply for the next half hour. I covered on the first move above the previous bar's high as indicated by the arrow.
Weekly Market Recap Oct 23, 2016
18 hours ago