XJO 22 July 2011 - Trade Chart, Bar by Bar

With the strong positive lead from the DJI (Dow Jones) the market took off in the morning. I was able to catch most of it during the night session. So at the Australian open even though the XJO starts charting at 10am the Aussie cash Index at MF Global has already reached the morning high from the night before. It takes about 20mins or less for the two to match up.

In any case I watched and waited for a trade to unfold...........

At 11.50am I entered a potential bounce of the 50moving average @ 4597 and waited to see if it would stick. It bounced again against the 50ma and then broke out of the small consolidation area to test the previous high. I sold my first lot at 4602 and held the rest to see if it would keep going. It did and moved to the 4612, I probably could have taken profits there but held, as my price target was at 4619. I could see on the 15min chart resistance yet I felt it would break to the upside.

As time went on it did very little but go sideways and starting to sag, so my stop was placed tight and I let the market do its thing, either move up and hit my price target or stop me out. It stopped me out at 4607: 10 points.

How To Trade - Example Trade, blow by blow

THE ENTRY

My entry at 4510 was triggered using my entry rules for a intra day Swing trade
1.My rules is that if there is a white candle that closes above the double blue lines then that candle becomes my Setup Candle.
2. If the next or preceding candles break the high of that Setup candle I take the trade. It must move at least 2 points above the Setup bar.
3.A Stop loss is placed below the lowest low of the base or Swing. In this case its 20 points away. Position size I am risking 20 points. My 1st target is 4536 or 24points and second Target is 4559 or 46 points.
So I am risking on this Swing Trade 20 dollars to make 24 dollars or better.

I  will update during the day with more live snap shots of the trade.

Now I am trading an CFD called AU200 CASH.IND provided by MF Global Australia, this CFD follows the XJO more closely than  the SPI.

DJI Daily comment 9th of July 2011- Within striking range

DJI daily as of the close on Friday 9th of July 2011, looks strong regardless of the 62 point fall on Friday.
The Chart shows a cross over of 21,50 Moving averages and a nice double bottom prior to this leg up.
At this level its a test to see if the strength will sustain and hit the previous top of 12876.
The 12,684.58 level is a level of strong resistance so it may bounce around this level and burn through to the previous high.