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| Alias Born | 10/27/2003 |
Thursday, October 20, 2011 8:37:46 PM
I was fortunate to catch 2 near perfect trade setups today on FCX and just wanted to share with the board the intra-day scalping strategy I've been using. When trades like these start to form in front of the screen, it is one of the best feelings I know of as a trader.
With the first trade, I honestly believe the price was brought down to $33.61 (quite rapidly) because of the converging trend line and the S1 Pivot Point support line. When I was watching the trade when the price was in the $33.85 range, I was saying to myself, if the price can get down to the lower $33.60s in the next couple of minutes, it would make for a perfect set up...however, I doubted the price would fall that rapidly in time for that perfect convergence of time, price and indicators. However, within a blink of an eye the price was sucked down to the S1 Pivot Point and it bounced back as quickly as it fell. I'm convinced that it was an orchestrated move, but I was fortunate enough to be watching FCX at the time (I had planned on trading FCX, HAL and GS today regardless) and was able to pick up the scalp at $33.68 on its way back up.
The second trade, while not as perfect as the first trade, was pretty darn close and offered the double-bottom scenario on the S1 Pivot Point to add to the confidence level to take the trade. And the price didn't drop to $33.60 rapidly like the previous trade, but rather it drifted down more deliberately allowing me more time to prepare to take my position.
Anyway, they don't always line up that perfectly, but because they did and I was fortunate to take part in them, I wanted to share the strategy here.
With the first trade, I honestly believe the price was brought down to $33.61 (quite rapidly) because of the converging trend line and the S1 Pivot Point support line. When I was watching the trade when the price was in the $33.85 range, I was saying to myself, if the price can get down to the lower $33.60s in the next couple of minutes, it would make for a perfect set up...however, I doubted the price would fall that rapidly in time for that perfect convergence of time, price and indicators. However, within a blink of an eye the price was sucked down to the S1 Pivot Point and it bounced back as quickly as it fell. I'm convinced that it was an orchestrated move, but I was fortunate enough to be watching FCX at the time (I had planned on trading FCX, HAL and GS today regardless) and was able to pick up the scalp at $33.68 on its way back up.
The second trade, while not as perfect as the first trade, was pretty darn close and offered the double-bottom scenario on the S1 Pivot Point to add to the confidence level to take the trade. And the price didn't drop to $33.60 rapidly like the previous trade, but rather it drifted down more deliberately allowing me more time to prepare to take my position.
Anyway, they don't always line up that perfectly, but because they did and I was fortunate to take part in them, I wanted to share the strategy here.
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