Thursday 21 December 2017
This morning’s stop out and subsequent rally to a new high
is what is called a shakeout. There is no way to determine
in advance if a quick down move will continue, which is
most often the case, or turn into the occasional shakeout.
With half-positions, we tend to exit quickly. The entry
was timely, with no move against the position, and price
came near to potential resistance, 14.88 when we entered
the protective 14.58 sell stop, should a correction ensue.
This was not one of our prime entry positions, which is why
only a half-position was suggested. The trade was an
experiment with a new set-up we have been monitoring.
There are always other trades.