Today I went 4 for 4 not netting more than .30 R-Units on any of my trades. However, at the end of the day I finished with more than what I started with after a kind of day that would typically leave me in the hole.

This is one of those typical trades that I made today that was good for a quick little counter-trend scalp after quite a little flurry of buying.

When I see a flurry of activity going off on the NYSE-TICK around the 1000+ reading, my radar goes into hyper-gear for signs of exhaustion & slowing momentum. I didn’t have to wait long to see what I was looking for:

The key to making successful counter-trend plays on such a trending chart is to not get greedy and go for too much. I didn’t know whether or not the 610-tick trendline would hold (turns out it didn’t and I would have made much more by holding, but that’s hindsight), so all I can do is take those high-probability setups that do occur and bank a little as I’m able.

On this entry the converging factors were:

1.) 55-tick negative Trendline Break (TL-)
2.) 55-tick negative TRIX divergence (TXD-)
3.) NYSE-TICK hook making a lower pivot high
4.) 610-tick & 2-minute TRIX Divergences

There was a lot to point towards lower prices for at least the immediate future so I went short at the Red Circle & covered at the green not long after. After entry, all I was looking for was a pullback to test the rising 610-tick trendline 5 ticks away. Not a lot of glory in this type of trade, but if you’re looking for glory, then you’re in the wrong profession.