Well the market rarely does exactly what you anticipate it to do. The FTSE fell out of the trading range that I spoke about this morning, continued its decline and later managed to rally up during the afternoon session. The first trade this morning was counter-trend and based on divergence between price and the MACD histogram bars which I closed out for a loss (they don’t always work out). The second trade was better, trading with the higher time frame trend off another MACD divergence setup, and also looking for an interchanging support and resistance level to hold.

The FTSE struggled for the rest of the morning before running into support near yesterday’s lows, formed a double bottom and staged a small recovery over the afternoon session. I took 11 points from this mornings second trade (see the tweets below) and managed to grab another 10 points from a trade this afternoon after noticing the MACD divergence and entering once price had pushed past an intraday resistance level.

The FTSE continued its decline from this morning’s session and despite a small recovery after lunch it ended up sub-6100 at the close. I managed one more trade this morning which was a counter-trend trade off intraday support (ideally I should have waited for the market to test the 6100 level) and was swayed by a little class-B MACD divergence pattern that was developing at the time. This afternoon I managed to get back in sync with the market and shorted off an intraday resistance level with MACD divergence (in the opposite direction) which worked out.

The markets closed early today. The FTSE sold off after hitting resistance at the overnight high, for support and managed to rally back to 6250 after a small dip. Chart shown below for reference only.