Ideal Trades Dec 28

Dec 29, 2007: 12:04 PM CST

Here is an interesting study on the intraday price action in the DIA (Dow Jones ETF) for December 28, 2007, which includes the most perfect “Gap Fade” Play I’ve ever seen.

  1. Gap Fade play: This example of a gap fade is one of the most perfect examples in that the gap was clear, was less than $1.00 (100 Dow points), stalled (allowing short-sell entry), and then immediately fell, reaching the target in 5-minutes.


  2. A consolidation break: Price consolidated until noon, rotating above and below yesterday’s close, and then broke strongly beneath the trendline support, providing a nice breakout continuation trade to the downside


  3. Momentum Divergence: A “bottom formed” with a momentum divergence which also served as a rapid “U-Turn Buy” that broke above the 20 period MA.


  4. Price Consolidation: Notice how price rotated between yesterday’s close (resistance) and moving average support. These trades – if taken at all – were scalps only and probably didn’t provide much profit if attempted



1 Comment

One Response to “Ideal Trades Dec 28”

  1. Jeff Says:

    so then you made tons of money on Fridays???????????