March 21st
I really like how the day went for a few reasons. We have FOMC tomorrow which almost guarantees that today will be choppy. I took that information into account and knew that taking profits at the attempted break of higher high (longs) or the attempted break of lower low (shorts) would be the only way to walk away with sanity. If I tried to hold through breakout levels I just knew I would be angry because it would reverse on me and I would be breakeven.
Futures
1st: Micro Reversal Intraday Continuation
- We started the day up about 1% on the SPY which is no small task. I knew that going long today would be easier than going short because that momentum will most likely stay throughout the day when we open and are already up 1%. I was looking for long setups near the open because that is usually when we see the strongest momentum and if we were going to go long today then it was going to happen quickly. I got a setup to take my trade idea which was a bull flag continuation. Lets go over a list of reasons why this long was a good idea:
1. Above previous day high and PDC
2. VOLD: >3
3. ADD: +20000
4. TICK: >/=0
5. Flag coincided with premarket high and opening price levels
6. above VWAP +all MAs aligned perfectly
7. MACD bullish on 5, 30, and 1h charts
8. holding above previous 30m lower high creating a new higher high on 30m timeframe
9. Cumulative TICK all green
10. DXY breaking down and moving lower throughout session
If you put all of that together and remember that FOMC is tomorrow so instead of holding for a trend day you sell into the breakouts, then this trade is absolutely BEAUTIFUL. I had a great plan, all the indicators lined up, I entered on a price action pattern (bull flag) and had clear risk with clear reward. I took the trade and did exactly what I planned to do and it worked out amazingly. On the day before FOMC I am very happy to be green at all let alone a 7.5 point trade. Very good all around.