This is a quick post to demonstrate the result of the trade of the last few posts. The reader can begin following the thread here and work backwards:
This started as an attempt to catch a pullback on a downward trend on the FKLI. The first attempt was stopped out, and we moved camps to a higher resistance level for a second try. This is the result:
We would have scaled out at about 1:1, in order to reduce risk on the trade, and then trailed the remainder. This trade did not move all the way in the direction we desired, but it was an acceptable one. It is most likely that momentum will move prices up one more resistance zone higher, where the final short would occur. Depending on the availability of time, I might cover that, but this series of posts shows how a set of decisions can evolve over the life time of a trade.
Thank you very much for following this series of posts, and good trading!
Head Trader Consultant