I thought I’d dabble again today and get back into the swing of doing some trading. It’s been a while since I updated this blog but I do want to get back into it and start updating the blog as religiously as I used to.

Anyway, some nice technicals on the DOW today. You could see that there was a clear downtrend channel (where I have wrote ‘resistance line here’), I drew the line to see how the chart would react to this line.. obviously, the idea is that if you are looking to sell, sell when it gets near this resistance, if you are looking to buy then buy when it pulls back to this line.

This is exactly what happened.. the price action broke through the resistance line and then fell.. when it did, it penetrated the line (now support) before bouncing up.. this was the time to enter so we’re in at 10285. I felt confident with this entry as the ADX line also has the green uptrend line cross the red downtrend line.

The first area of resistance would be the 10300 mark but the market didn’t even seem to notice this level so I left it. The next level was 10330 or so which was form from a previous peak (which we can extrapolate back from the original resistance line.. sorry, it wouldn’t fit on our chart).

It was at this point I took profit ..  a nice 45 point day!

(click picture for larger image)

Following on from my successful 40 odd points from the DOW, I had another success with the EURUSD. I shorted the market at 1.4645 and it was drifting nicely south when it made an upward push against my position.. my stop was at 1.4670. Market fell and I had my limit at 1.4622 for 23 points.

I shorted the DOW when it broke the trendline at 9740 or so.. however, it wasn’t the perfect entry as the market bounced from this area of support to go north… I had a stop at 9780 which was the previous high but nonetheless, my short wasn’t ideal as short trades should be entered on a long countertrend.

I had to watch the market go against me 30 points or so before it tanked.. it went past my entry point and I took profits at the round number 9700 for 40 points which wasn’t bad. However, the market is still going down, as I write, it’s at 9672 meaning that I left another 30 odd points on the table… nevermind!

The market just dropped further and hit 9660….. double nevermind!

Tags: day trade, daytrading, dow, intraday trading, shorting the dow, Spreadbetting