Mar 102010
As RG mentioned in his post, selling the highs at strong resistance can be a high probability trade. All other things being equal, of course. On this daily chart, you can clearly see that there is resistance from mid-January around 1148:
Around 11:35am, the opportunity presented itself. Once price failed to reach the highs after bouncing off the 1148 resistance, a good short entry was made for a 4.5 point target. With risk at only 4 ticks, this trade has a great risk to reward ratio:
The chart below shows how analysis of bid and ask volume at the entry area. The chart shows order flow and helps see the potential market turn.
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