Thursday, July 30, 2009

Short From The High

Hi guys,
I wanted to show you the evolution of a trade I took today. I only had a few minutes to trade today and I got lucky that a good opportunity was present in my limited time. Start from the top picture to see what I was seeing and thinking and check out the pictures below to see my exits.

The top picture shows how dramatically delta momentum had faded on the move to the top. I had great certainty that we would get (at least) a small pullback, so jumped in with little concern.

Even with the big move up, and how much the day looked like it might be a trend day, I just didn't fully believe it. I scaled out after 3 pts at the 1 SD of VWAP. I wanted a profit in case this was just a small pullback. However, I really thought there would be more available on this move. I didn't really think the market would sustain a trend move following such a big gap and up move.

I hope it helps,



  1. Dr bryan i meant the chart definition for your Delta Momentum ,and breakdown of what,s going when we have a divergence , what is happening with net buying/selling a bit confusing for me.

  2. Jenny,
    Do you have the definition? Or do I need to post it? Or do you just need me to describe what is going on.

  3. DR bryan i love your bloge its very helpful
    thanks very much for your share