A downtrending day with a higher close has put the “Supply & Demand System” in a long position from yesterdays open. Hopefully you saw yesterday’s typo and saw that 15 “contracts” were being used in the sample money management section; 500/32.78 = 15.25. Anyway, the practical question now revolves around trade management, specifically, where to place the stop.
In the current environment we do not have much room for error; and, for what it is worth, I don’t have a good feeling about this trade. We did make a new low yesterday and the ADX continues to rise indicating the down trend is still in force. More importantly for my immediate purposes, the current “support” line is right underneath the market. A break of that line would nullify the current bullishness and should be used as a Stop Loss level or a “Stop and Reverse (SAR)” point. This morning the support line sits at 1240.80.
Educational use only. Never intended as investment advice.
In the current environment we do not have much room for error; and, for what it is worth, I don’t have a good feeling about this trade. We did make a new low yesterday and the ADX continues to rise indicating the down trend is still in force. More importantly for my immediate purposes, the current “support” line is right underneath the market. A break of that line would nullify the current bullishness and should be used as a Stop Loss level or a “Stop and Reverse (SAR)” point. This morning the support line sits at 1240.80.
Educational use only. Never intended as investment advice.
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