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Exiting on the Close

August 8, 2012

Continuing from yesterday’s discussion, I’ve included the Advantage Key Levels indicator on today’s chart. This is a more objective and mechanical way to identify significant price swings, and it can be a great aid for those who do not like to rely on discretion.

I’ve highlighted a pullback to the EMA that I did not buy because I had a support line in place at which to enter. After this the market fails to make new highs – this can be clearly seen because the Key Level picks out a lower swing high. Consequently, when we head down to the support line I am no longer interested in buying this market. Neither of these would have been terrible places to establish a position, but in neither case was a retest of prior highs or lows forthcoming.

My last trade was to short at the new resistance line. Neither my stoploss or my profit target had been reached by the close of the cash session, and so I exited with a 1.50 point profit. I tend not to take positions towards the close of the session, so this isn’t a regular occurrence.

-1.50

+2.00

+1.50 (exited at close of cash session)

(+2.00)

View Today’s Trading Chart

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