Today like yesterday I didn’t catch the Forex options, they were not available when I sat in front of the monitor, so I took my trades in indices again, in Dow Jones this time, 60 seconds trades. I had a good 3/3 ITM which is nice, I am trying to choose only the solid setups and avoid over trading. Let’s take a look in my results and after than I will expain thesse trades and my setups.
As you can see 3/3 ITM only 60 seconds trades. So let’s go to first screen shot of the day.
I am using free stock charts software and the only indicator I have is a volume indicator. Notice the general picture of the market this hour. A mini- down trend in the beginning of the chart and after that the market is ranging and we have reversal in the white horizontal line which is our resistance.I took all my trades inside the blue rectangle.Take a closer look.
As we have a ranging market now it’s a good time to find reversal opportunities because supports and resistances work well in conditions like this. So, I took a call in my first trade and after that I took 2 puts, all in the money.
As I said my first trade was a call in the first call arrow inside the blue rectangle. Why did I take this trade?First of all there is some space between the price and the resistance line.Now look at the price, I drew a small trendline and it shows that we have a higher high. If you look at the volume you will see that the volume is following the price and we have a higher high,too. So, the price is moving up with increasing volume, there is space for the resistance so I took an ITM call.
My second trade is in the second arrow in the rectancle, a put arrow and this setup is very simple.Ranging market condition, the price hit the resistance and I took a put. Solid ITM.
My third trade, the last arrow inside the blue rectangle, a put arrow,too. The price finally made a reversal but look the red reversal bar. It engulfs the previous green candle. We have an engulfing canddlestick pattern and I took another one put. My last trade was also in the money.