The day after FED day can be more volatile as other timeframe market participants get involved and bigger sums of money get moved around. Today didn’t disappoint. The market gave plenty of good opportunities for scalping and daytrades.
Here are the best 2 trades of the day:
10670 was a really good support level, not only on the chart but you could actually see a solid buyer on the tape. The market had tested it earlier in the day and bounced off it. On the second test it started to bounce again, but this time it retested very quickly and sellers were hitting that buyer at 10670 very aggressively. This set up a great little low risk short trade.
It turned out to be a 2 in 1 trade, I managed to scale off half for 10 ticks, and got opportunity to reload my position on the retest…..bonus!
The market pushed lower and I scaled at the last low for 10 ticks and held the rest for the obvious target of yesterdays low +20.
The second trade was the double bottom at 18:17GMT, a classic setup of a retest of the day’s low and yesterdays low during the low volume NY lunchtime period. No new sellers came in and the market started to push slowly back up. The long was confirmed by TICK divergence.
On a separate note. If you are a professional trader it’s worth investing in an Uninterruptable Power Supply (UPS). This is a unit which your router, trading machine and screens can plug into and gives you several minutes of backup power in case of a power cut. I had a cut today and having your trading machine go blank while you are in a trade is not a pleasant experience!!! A UPS just gives you a few minutes to either reset your circuit breaker or close any positions and pull any resting orders.