Most of you know I have an obsession with ICE. At times it has not been healthy. But I keep coming back to it, and over the last year, it has been very profitable as a whole. ICE is extremely hard to day trade, and it is not often that I try it. It has a very wide spred, the fills can slip a lot, and it is very volitile, shaking your stops out with ease.
However, today all the stars lined up, and it seemed worth the risk.
ICE gapped up briefly above a four day down trend (chart below), but could not hold
It tagged daily support…..
….and began to base on low volume. It then printed a hammer right at the trendline. As it broke above the hammer and the trendline on the next bar, I entered. My goal was originally the close of the previous day. But when it broke through that, I set a partial limit sell order just below the open. It tagged the price and I was filled. The other half of my postion got filled when ICE shook me out on the 19th bar.
ICE began to base again right below the open price. I wanted to enter on a break, but was determined to wait for a signal candle. When the 21st candle finished strong at its high, and above the open (a la Trader X), I entered on the break on the next bar. I was watching the ORH very closely, and when ICE came back in from it on the 23rd bar, I took a partial. The rest was closed out when the low of the 23rd bar was broken on the next candle.
All in all a profitable “stair-step” type of trade.
AAPL had a nice move today, but by rolling down my options, I limited my profit a bit.
