10/31/2012 Example Trade

There was a raft of economic reports this morning which kicked off with jobless claims 8K under expectations.  The ES didn’t look back from there, moving through the DTG 9.75 level after the cash open before breaking up to the  DTG 16.50 level.  There price double topped, but the institutional sellers were not interested.  About 5 minutes later, price triple topped; this time there was strong selling creating an order flow short opportunity.  Any short trade didn’t last long as the buyers were not done and the trend up continued.  In the buying euphoria, the ES overshot the DTG 20.75 level before forming the first high failure of the day with institutional selling.  This setup the second short opportunity and today’s example trade.

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