Mar 102010

As RG mentioned in his post,  selling the highs at strong resistance is a high probability trade.  On this daily chart, you can clearly see that there is resistance from mid-January around 1148:

Around 11:35am, the opportunity presented itself.  Once price failed to reach the highs after bouncing off the 1148 resistance, a good short entry was made for a 4.5 point target.  With risk at only 4 ticks, this trade has a great risk to reward ratio:

The chart below shows how analysis of bid and ask volume at the entry area.  The chart shows order flow and helps see the potential market turn.

 Posted by at 1:54 pm

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