Thursday, December 20, 2007

Soybean top for the day

Note the top is shown in the left-hand side chart with the bearish divergence on the Klinger+ATR indicator. I have drawn a red line with a red downward arrow to indicate where it is. This same top is shown in the tick chart on the right as a head and shoulders top. I got out just before prices crossed the dotted yellow line on the right chart, which is the Bollinger MA (20 period SMA). The short trade on the right is a bit rough, but profitable so far. I shorted at the bottom of the first green candle that straddled the EMA and the Bollinger MA on the right chart. It will most likely accelerate downward as the close of session approaches.