Anatomy of a day trade

We knew today's numbers were 609, 605 and 597 and we did not have a position going into today. All we knew was down market. OK, it gapped down to S1 (597) due to bad employment numbers. Patience paid off when it reversed and touched pivot (605). Shorts were initiated then closed when it reached S1(597) again for approx 7 points. (= 3.5 bucks). Then there was the upward sloping bearish channel. When it broke the upward sloping channel to the down side, shorts were initiated again. This section we were dealing with S1 (597)to S2 (584). Normally it ends somewhere in between the two. You can use channelling to govern the exit. When it broke out of the bullish downward sloping channel to the up side, shorts were closed. Another 5 points or 2.5 bucks. You do not need fancy charts, just pivot numbers and simple straight lines to make a buck. In the real world, you do not get the 7 bucks exactly. Allow for slippage to aim at 70% of 7 bucks = approx 5 dollars is not bad at all. Could you play the upmoves, yes, but it would be against main trend and you would be vulnerable to severe down drafts. Anyways, more sellings to come. Monday's numbers are 604, 598, 591. Since you see the pivot going lower and lower daily, it does not take a genius to recognise a down trend.

2c