For some reason, I was not motivated to blog about my practice trading yesterday. Here is how it went. One trade in TNA and a small gain. To the right are the chart and the day's tally.
This was a reversal play that dipped some after I got in long. It actually dropped three cents below my stop line but I held it anticipating that it was a move solely intended to trip stops before moving up. After the pop, TNA started back down and continued in that direction for the next 30 minutes. So perhaps the best narrative of that 1:30 pm pop is that it was a move based solely on triggered stops and once that buying died, so did the move up. Short covering, but no continuation / organic buying. It's good info to think about, but in the end, it pays to be nimble when trading for reversal against the primary direction of the trend in which one is involved. Here, the primary direction is down after the 11:10 am tall green candle (not pictured) accompanied by above-average volume.
