Risk: 0.55%
Short: 7547.8
Stop: 7591.3 (44 pips)
Target: 7465.5 (4h100, 82 pips, 1.87 RR)
Mindset: Nice set up. Divergences on multiple timeframes

Updates

Stopped out, but still looks good – 2 June
Missed a second entry by 3 pips! 🙁 – 2 June
Sometime later – 9 June

I’ve been watching the FTSE for a while, I’ve had a number of opportunities to get short and haven’t done very well getting my entries. There’s such a big difference between seeing a trade (especially in retrospect) and actually making money out of it. (E.g. Spikes taking you out and you not being around to get back into the trade, waiting for a better entry that doesn’t get triggered, trading the wrong market, etc etc.)

The FTSE has been looking great on a number of timeframes for a short and I’ve missed the boat on one of these trades already. So I was pleased to get another set up come along. We had a divergence (double) forming on the weekly (not in yet), another double on the daily (currently active) and a 4H & hourly divergence! Set ups don’t really come better than that, right?

I’ve been losing quite a bit lately so I’m trading tighter now (only taking a divergence when confirmed on another timeframe) and looking for correlation on other markets.

FTSE Monthly Chart

A marginal divergence might form this month?

FTSE Weekly Chart

A double divergence may form here.

FTSE Daily Chart

The rise in prices have a diverging trend on the MACD

FTSE 4H Chart – the setup

Price rises haven’t been coupled with a strong MACD. The MACD is very flat so it’s hard to pick an entry from this chart.

I’ve taken the most recent spike high as a place to get long. The entry is on the 8ma. I think this trade is a good set up and could run if the weekly divergence comes in. If it does, this will need stop management. Not something I have been in the position to worry about. I can also see this getting stopped out so I will need to be ready to get back in.

Stopped out, but still looks good – 2 June

Prices have continued the trend higher. Not surprising really. If the move that stopped me out immediately reverses, I will try another entry immediately.

Missed a second entry by 3 pips! 🙁 – 2 June

Doh, I set a couple of price level alerts to see how price behaved following my stop out, both alerts were hit quickly so I felt a reversal could be happening soon; it did. I’ve been keeping an eye on the price all morning, waiting for my time to get short following a retracement. I was looking for an upper band test at 7580 but it only made it to 7577 (3 pips short).

I took this screenshot in preparation for the trade log but it never got there.

NFT was this afternoon and price has fallen away since. Pretty annoying to see, but we haven’t broken the higher timeframe trend yet so I am hopefully that I might get another entry to go short again.

The hourly chart might set up a divergence and the 4 hourly, daily and weekly would still be diverging. So that would make another nice entry.

Sometime later – 9 June

Thought I should start monitoring how markets play out following my trades (win or lose). Here’s the FTSE. Would’ve been a great trade had I got in, but I didn’t and that’s trading, sometimes you get lucky.

Maybe a shouldn’t be too precious on my entries?