December 1, 2011
- in Uncategorized by schooloftrade
Price Channel Day Trading Strategy
One of the most effective day trading strategies uses price channels to identify the highest percentage trades. This morning we found the Russell at the highs of a long term bear price channel, and then combined that with the highs of the range from Wednesday, and the highs of the price wedge to complete a very easy set-up to get short.
By 930am EST the Russell had fallen off the highs, so we bought the Low of Day first, which got price back up to the highs again, and then we took the short off the highs knowing it was the highest percentage trade of the day. We managed the trade properly, and earned over 70 ticks of profit, netting more than $700 on the trade.
After the big drop off the highs, the market slowed down considerably, which we were expecting because we have Non Farm Payroll news tomorrow, Friday, at 830am EST and we know that the Thursday before NFP Friday is always sloppy in the late morning.
