Wednesday Diary - Dodging the Bear Trap

Following the down trend in the hour before the cash market open I figured there was a possibility of one more push down to a support level of 1102-3. Given the fact that there was some significant news to follow I figured I may only get one shot early on at market open.



I therefore committed only one contract and went short at 1105 off trend support - not a great fill - and took some heat prior to delivering one point towards the support at 1105.


My pre-defined support level was based on the previous cash market swing lows in the last hour and in fact around the closing price.


I then sat out the rest off the session given that the volume dropped off as Thanksgiving holiday was on every ones mind.

P.S. I use volume charts as it provides a nice visual against my moving averages - even more so now that the ticks have been 'unbundled'. My pointer to use volume charts (over tick charts)came from an excellent blog that i follow - check it out:
http://www.movethemarkets.com/blog/