Sunday, September 10, 2017

30 Minute Candlestick Short - KR

Trade: KR short - Here is a trade I would have taken but not in front of my screen at the time. Helps to trade with a partner so you dont miss opportunities. There have not been many shorting opportunities of the past few month's with the strong market. Here KR has a  strong gap down with an inside bar at bar 3. I added the ES chart showing the S&P 500 15 minute chart to show the weakness of the market and why the trading environment favored shorting. Can see the S&P 500  is trading below the 200sma average and banging into congestion. Rule of thumb  - day trade with the strength or weakness of the markets.

Entered off Bar #: 3



MARKET DIRECTION 

SPY 15 minute 5,10, and 20sma: down
SPY 15 minute 200 SMA: flat to down

TRADING PLANS 




* The market direction refers to when the trade was entered. Up is all three SMA trending Up, down is all three are trending Down, Mix is mixed or choppy market to then refer to 200SMA for preferred market direction)

* You don't have to trade everyday. If the conditions don't feel right or if you're unsure of the current days trading environment then PASS on the trade. Missed money is better than lost money.  Day trading and the stock market is not a "war" that you must win at all cost. Trading should be fun, wait for only the good setups. Follow your rules, stick to your stops, and know that everyday the market presents a new chess board.

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Disclaimer

I DO NOT MAKE RECOMMENDATIONS TO BUY OR SELL SECURITIES - I JUST POST TRADES I MAKE OR FIT THE RULES OF MY TRADING PLAN ON A DAILY BASIS. DO YOUR OWN DUE DILIGENCE - YOU ARE RESPONSIBLE FOR YOUR TRADES, INVESTMENTS, AND DECISIONS! ALL CHARTS COURTESY OF TRADESTATION, SCHWAb & TD AMERITRADE