An interesting session! It's hard to put into context what's going on so I won't try. I am trading what's in front of me, which is not pretty but really quite exciting.
The plan I have been working on for the last 18 months is that there is sufficient in the first hour of trading the FTSE 100 to meet my needs. The average move across this timeframe is 50 points which I aim to trade actively to the point where I take a minimum of 20 points off the market every session I trade.
I use a combination of Stochastics, momentum and timing to enter, focussing on 5 minute and 1 minute charts. After a daily pre-trading research session, scanning the news, reports and sentiment I then plot support and resistance levels from multiple timeframes, starting with monthly, weekly, daily then down to hourly and lastly 5 mins. I am looking for repetition and therefore strength, plotting the key levels on my 5 mins chart which I use to plan my trades for the session.
There are key times in the hour between 8 and 9am that the FTSE changes direction, which I use as a guide, with price action, stochastics and momentum being my three elements that dictate where I enter and exit.
Today, due to the speed of movement I missed out on the top and bottom ranges, but took 40 points and retired. As this blog progresses I will go into more details as to how I plan my trades but for now it's time to do my homewrk and see what tomorrow brings.
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