I had several picture perfect trade setups executed according to plan today. Here's is how it worked.
1.My automated trade system generated a sell signal on the Dow (DIA).
2.I found a trending stock that was trading above average volume and showed a negative divergence against the major market.
3.I confirmed I had a sell signal on the stocks I was monitoring and I went short with a stop and targets to scale out.
4.I exited the trades at the low of the day with a confirmation from my automated trade system giving a buy signal.
Watch live video from High Probability Trading on Justin.tv
Short Setup #1- Automated Sell signal from the Dow (DIA= DOW ETF)
MED- GAP down and break of 1st hour lows and trending down on above average volume with confirmation trade signals.
These 2 stocks are perfect examples of the IDEAL DUMMY STOCK TRADE SETUP- A gap lower and break of the morning opening lows within the first hour. I had confirmation sell signals until the market reversed at 12:30pm EST.
For more information on DUMMY TRADE SETUPS, MaoXian offers many examples. Although his website is down, you can still view the old posts on this cached website. Also checkout Trader Mikes post on Dummy Trading.