The FTSE spent most of the day range bound between the 6118 and 6086 levels shown on my chart. I managed to get in a few more trades during the course of the afternoon, initially going short looking for the 6100 level to act as resistance (got stopped out), and later shorting the 6118 level again as the market popped back up to re-test it. Later this afternoon I changed directional bias and went long off a class-A MACD divergence pattern, and managed to scalp a few points closing out at the 6100 level.

On the daily chart it looked like price had just come off that lower trendline, however, the FTSE has been trading in a downward sloping channel on the hourly chart so I was looking to get short this morning off any pullbacks to key levels.

Shots fired and I’ve done exactly that getting in at the 6118 level, a previous level of support which hopefully will act as resistance in this case. Further confirmation before placing the trade was that the MACD histogram bars were beginning to decline and price was starting to head back down.

The FTSE behaved as expected for the early part of this afternoon as it slowly crept up and recovered this mornings fall in price. After 3:30 pm it was a different story as the market promptly declined and fell trough the lower trendline on the daily chart which I had mentioned in my previous post.

Unfortunately I got stopped out of this mornings trade (I was stopped out almost to the pip before the FTSE did a U-turn and headed back up), but managed to scalp back a few points with another long which I placed based on previous support and the MACD histogram indicating a potential change in momentum. I closed out after noticing a hanging man candlestick formation (highlighted in pink on the chart) as I wanted to clear the decks prior to the US session.

My thoughts going into this morning are as follows:

• Overnight the FTSE has been trading in a relatively narrow range between 6145 and 6155.
• The last two days have seen the market rally up and continue to sell off for the best part of the day, then recover during the US session, or after market hours.
• On the daily chart the market is not far off the upward sloping trendline, a triangle pattern formation; so beware of a pullback off that trendline.

Although I was planning to short the market on any significant pullbacks, I was slow off the mark as the market seemed to sell off straight from the open, and I was unable to get on-board as intended.

I have just taken a speculative long off the yesterdays low of the day (LOD) at 6118 (MACD histogram bars seemed to be declining) and looks like I’m going to get stopped out.

Note to self … Learn to trade with the trend you fool! Don’t try to catch falling knives!