FTSE100 perfect technical trading
I had my day off today so I thought I would look at the charts for some trades early in the day before I went to the new Westfield shopping centre which has opened up in London.
The FTSE100 obeyed some nice technical signals I was able to capitalise… not to it’s full potential but still, it’s nice when you get a perfect technical day.
The first thing was the previou low of around 4200 at 8.30am when the market tested the level and bounced to 4240.. it then started to fall and for an instant, I thought that we may see a break below this level and then significantly lower prices.. I wait for this to happen and the market did penetrate but didn’t go much lower.. it sorta stalled. Drilling into the 1 minute chart (see my diagram below), the chart made a double bottom and them moved above the level set at 8.30am. When a market fails to go below the previous low, this is a sign that the bears may have been exhausted. This, together with the double bottom pattern as the market went above 4200 was a buy signal. I got in at just above 4200 and rode it up to 4240 where I close it. However, the market continued to shoot up, more than 200 points higher from this level!! Ok, I missed out on the greater profits but it’s great when the technicals work to perfection.
