Another day.....another first bar WOHOAAA trade

The first bar trade was again a nice winner and with very little heat, she just dropped into 45 minute support. When I get into one of these trades and we move into higher time frame support I watch the internals closely....looking for either three spikes down or even more important....a spike in the prem to a new low for the day without the tick or tiki.

The reason is simple, that is the floor pushing and the cash wasn't following along and you can expect a bounce.....


One problem I really have is when people tell you that you don't need price to confirm a lagging indicator. YEA, YEA, I know the first thing is that they are told it's a leading indicator, but how can it be a leading indicator if it is looking at the last 6, 14 or 50 bars. But here is a classic example, the secret sauce spread was red, the 50CCI was red, the turbo (6) had come above 100 and was setting up my ideal setup for a short.

So there is two things here, first you might be trying to front run the close and with 15 seconds, left give or take, on the three minute bar decide to just take a short and you would have shorted around the top of the bar with the cyan line. Or after the bar closes and the turbo turns down and you decide to short the market again you might have gotten short about the same price level.

But the market continued to move higher, so what stop did you have in mind.....5 ticks, 8 ticks, 12 ticks, well try around a 15 against you. Do you or can you take that kind a heat to see if this will become a winner. Remember, the turbo is still pointing down so even in hindsight this was still a valid hold. When the price did turn down it only came back to around the 662 even area. So lots of pain without any gain.

BUT, if you had used the idea of a trigger, where the low of the setup needs to be taken out, you wouldn't have ever taken this trade.....SO DID YOU????????