I got short on a break below support. There was no follow-through and I took a lot of heat, didn't get stopped, and eventually hit my target resulting in a gain of 16 ticks.
Position: Short
Entry: 4428.50
Exit: 4424.50
Result: +16 Ticks
The Setup
5 Minute
Initial jobless claims came in higher than expected after a brief rally prices started selling off.
30 Second
It looked as if price would continue and this was just a quick consolidation before another drop.
The Idea
With jobless claims slightly worse than expected, I suspected price would continue down to new lows.
However, I failed to realize the 5 Minute downward support until one of our students pointed it out and I was already in the trade.
Had I drawn this in and taken more time pre-open to identify this, I actually would have been more interested in a long position here where I entered.
I held on to it assuming the lows would be broken and didn't expect price to retrace and take me out at 4438.50. Luckily, price went up to 4437.75, 3 ticks away from my stop.
The Lesson
I got into the market too soon and didn't properly identify significant levels of support and trends.
Having known I was selling into support, I would have waited for the retracement up to resistance and shorted when the buyers were done, anticipating a new wave of sellers as we saw with the second sell-off.
Links
For data, I use Earn 2 Trades platform, which also gives you the opportunity to become a funded trader through their combine.
I use Optimus Futures for charting and order entry.
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