Monday, September 8, 2008

The importance of holding out

I did not short the VWAP opportunity @ 7:45 AM today nor the IB high. Partly because my brain was still foggy;-). But mainly due to the overnight sentiment. After the the run up and the volume in overnight trading I was less inclined to short. Matter of fact, I had the opposite bias. The selling during the initial balance was very intense after 7:45AM. However it was quickly reversed in the big contracts chart. Though not as evident in the general chart. This is why following the big money is so important.

The best opportunity personally was the the low @ 11:01. Here the trin was markedly divergent, the big contracts were net positive at the low. Two extremely important factors that lent confidence in entering this trade.

This was a 20 point trade with an add opportunity @ 12:10 timeframe near the 2nd std. deviation. Arguably in my opinion, the best opportunity of the day. Will expand on that more in the next post.

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