Going into this mornings session the following points were evident:

• The FTSE had finally posted a green candle on the daily chart after several consecutive red ones.
• There was a sell off after hours yesterday followed by a good recovery overnight so I was expecting some continuation this morning.

The open was a little messy with several long candles as you can see on the 5 minute chart, and the FTSE oscillating between the levels of support and resistance between the 6026 and the 6045 levels respectively.

In addition to the triple bottom formation, I also noticed a class-B divergence between price and the MACD histogram bars so I’ve taken a long @ 6030 with a 20 pip stop which I’ve already trailed in.

A difficult days trading with the FTSE sitting in a fairly tight range for most of the day and finally breaking out in the late afternoon as the US markets opened. I was stopped out of my first trade for 10 points as I tightened up my stops once price had come back down and momentarily dropped below the 5964 level. Took one other short just before lunch off the 5982 intraday support and resistance level and managed to scalp a few points.

Going into this morning’s session I was wary that the FTSE had fallen strongly over the course of last week and was due a significant pullback. Additionally it was still trading within the downward sloping trend channel on the hourly. The plan of action was similar to yesterday in that I was looking to short any retracements to key levels.

Just shorted the FTSE 100 at 5964 (with a standard 20 pip stop loss) off a classic MACD divergence pattern, coupled with a previous support / resistance level.

The FSTE bounced within a consolidation range for most of the day, and eventually proceeded to decline further towards the close. Only one more trade taken today which was a short off a pullback to a previous intraday support level at 5965, which was automatically closed out as the FTSE recovered a little prior to the US market session. I’ve just noticed that there was divergence between price and the MACD histogram at the time.