Two small scalps for the day on the Financial Markets
The markets have been rather choppy where pullbacks have been quite large. I’ve been focusing on the 15 minute charts to grab a few pips here and there. Here is what I did today.
My first trade was crude oil. I could see that a ‘W’ pattern had formed in the 15 minutes. I had talked about the W pattern before in previous posts on the blog.. you can read one here:
http://www.makemesomemoney.co.uk/2011/09/01/the-w-pattern-in-oil-price/
It’s basically the market finding support. I went in a little earlier than usual.. if you are really strict you would buy after the peak in the W has been formed but I saw support holding and went in long at 98.12. The market responded nicely and went up. I saw some resistance at 98.50 and took my profit as close as I could as it started to move downwards and got 98.43. I took 31 points which is ok. However, as you can see, the market spiked up further after I had closed, hiting 99.00 exactly before falling. In reality, it’s not possible to get out right at the top but due to the nature of these volatile markets I didn’t want to take a chance.
My second trade was a DOW short. I based this trade on the market breaking below the daily pivot and then seeing that there was resistance. I shorted at 12121 and cover the market shortly afterwards at 12083 for 38 points. The market has fallen further since but that happens in the markets!
In total, I got 69 points today which I am happy with.
