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.
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.
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.
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
