weird wacky week, page-40

Gold just provided a trade that I regard as a classic scalp, with added bonus...

I have added a chart that demonstrates how I work these trades.

So far these have been my bread and butter... and I thought I'd post this here whilst in a posting frenzy... please forgive the off topicness, but I think this is worth sharing, and also goes a little to explaining other factors that brought my attention to previously posted charts on the SPX500...
I have scalped a bunch of difference commodities, currencies and indices using this set up.



Firstly... The drop at A... as price drops, it don't mean much but the point at which it dropped from, marked by the horizontal line (Potential Rise) will become the target.

If price then forms a triangle... as demonstrated at B, I become quite interested...and place a limit order buy just above the top of the triangle , represented by the horizontal line (Trigger).

If the limit order is hit, I have a stop below the lowest point of the triangle, and a profit target up at the horizontal line, Potential Rise.

as price rises I move stop (mentally or physically) to the trigger point at or above the triangle top.

Generally, price will hit the profit target...Potential Rise)... tho sometimes it fails nearby... and I can only describe my exits here due to "feel"

If I am feeling cocky, I will be running a number of contracts, and will leave a contract floating in case something like what happened in the shown chart happens...

In which case I will allow the floating contract to run until I "Feel" a weakness in price... (meanwhile, burning my grilled cheese sandwhich)

As with anything... this is not a given money maker, but it serves me well....

As an added Fillip, the circled movement on the MACD where a "hump" is traced out equivalent to price in the triangle, but with a markedly higher second leg adds confidence to the trade.

;)