Listen to the Market

TickStrike for Countertrend Entry Confirmation

It’s after hours, the big markets are closed. The futures are meandering along, certainly not worth sitting and watching charts. I’m away from the computer, working on various tasks, and I hear TickStrike go crazy!

I’m not planning on trading, but I head over to the computer and I see the following chart. The market is in the middle of a strong breakout to the downside! It is pushing.

TickStrike continues to sound off in response to massive selling. I know not to try and “catch a falling knife”, so I watch, waiting, more waiting. Counter-trend opportunities like this present themselves in a very obvious fashion. I see the squeeze on the bands, and huge bars pushing down. This is a 200 point move down in a couple of minutes!

How do I enter? If I enter when it has tanked 100 points, then it might bounce in my direction, or it might run me over like a freight train, so I wait.

Ironically, I’m waiting for TickStrike to shutup! It finally goes silent and the bright red meters go dim.

Now is the time. I pull the trigger and enter long with a market order.

Trade Entry

I decide not to use TickStrike to manage the trade, well, because I don’t really have time. The last trade had a stop strategy selected, and I quickly decide that is good enough for me. If I fiddle with the dome, I will enter too late, and risk the market coming back and crushing my trade. Here is the exit, all manged for me, as I sit and observe, knowing this trade was going to be over in a matter of minutes.

Trade Exit

Take a look at the entry again, with the bars zoomed in. Remember, I was waiting for the strong after hours breakout down to stop, so I could enter my trade.

Zoomed in to see the Trade Entry

This countertrend scalp grabbed a quick 21 points on the MYM.

The market breakout gave me the trade. TickStrike going silent gave me my entry.

I hope this helps.

DT

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