Its exceptionally rare for me to day-trade the FTSE – I was merely watching it today to see any reaction during election day when a very nice Wallachie Fan UTB123L trade set-up on the 15 min chart. It was almost picture perfect!
Price reversed at a daily support level and then took off north. I figured this was just a simple mean reversion trade and went long at 6807 with a stop 20 points away. T1 was at 6847 and T2 was at 6892. Normally I just set-and-forget however because of the possible volatility in the instrument today of all days I kept an eye on it. When price was starting to slow down just north of T1 then put in a few bearish shooting-stars / pin bars i decided to tighten the stop to the T1 level and prepare to be stopped out…which is what duly happened. Though as I write this price has not dropped heavily and is heading north again. Will it have the energy to make my target of 6892? I suspect I shall found out soon enough! (As an aside my rules allow a trade management decision once T1 has been hit. Calling it Target 1 maybe a misnomer – perhaps I should call it DP1 for Decision Point 1?)
For once I have simple maths for the trade outcome: +40points, +2R, +0.5%
So a few cheeky points on FTSE…..but at the cost of missing a cracking trade on DAX. Hmmm.