29/05/2013 – Cheeky 60Min FTSE Short: +120

It’s rare for me to have the time or inclination to trade below the 4 hour chart these days however I was lucky to be in the right time and the right place to be able to see this set-up on the FTSE 100 on Tuesday.  Why was I even looking? Well after the major break of trends at the end of last week across a number of indices I was going through these charts just looking for signs of a follow-through. lets take a look at the chart.

20130530 ftse s3s tgt hitOn the weekly chart after a great run north since May 2012 we finished last week with a shooting star / bearish pin bar (see my recent post on the Nikkei for more info). Along with Price Action the FTSE had also entered a S3S environment (normally something I’m aware of but don’t have the time or inclination to trade these days). There was nothing on the daily chart and at the time nothing on the 4 hour chart either. However I was just fortunate to look on the 60 min chart to see a bearish engulfing bar /MRC after the gap fill from the end of last week (blue rectangle) at the 62% retrace. There was enough of a confluence of events for me to take a trade in the direction I wanted to go so I got short at 6745 with a stop loss of 6775.

The target was in front of the recent low and in front of the  60 minute 200 MA at 6625 which was also a nice 120 points potential profit. Price dropped nicely and most of the hard work was done in the first hour yesterday were price gapped down and continued falling. My target was hit just after 2.30 yesterday…when I was at the beach having lunch! (I wish that was always the case.)

So a quick winning trade for +120 points/+4R/+2%.  I wish I could say it was because of my amazing foresight however this trade was a pure blue-bird. I was just lucky enough to be in the right place at the right time and the trade went my way straight off the bat. I’m the first to admit that I wish all trades were like this! Sadly that’s not always the case. So I just enjoy them when they happen.

Trade well,

Paul

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About FXTraderPaul

A professional Trader and Coach, FXTraderPaul blogs about his adventures from the front-lines of FX Trading. A Trader and educator who can walk the walk as opposed to merely talk the talk!

View all posts by FXTraderPaul

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