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Sunday, July 1, 2012

A classic TTT sell short trade

I wanted to show you what a more typical sell short day looks like. Earlier, I discussed short selling a buy day high made first, but below is a classical Taylor sell short day. As you can see below on the daily chart of the October sugar futures, the sell day high was taken out on the sell short day, then price reversed.


Below is 15 minute chart, that shows the sell day high, the entry bar for the short sale breaking the sell day high and 20 bar ema, as well as a trend line break, which further confirms the trend change.


What you can also see, is the wide range sell off bar at 9:30 that is a great indication to cover the short, and take profits, when this many traders are selling, it's a great idea to cover the short position. As Linda Raschke said- "when the ducks quack, feed them!".