FESX Breakdown trade.

Published on: October 24, 2013

Here is a customer video from Vaidas…

I’m not a huge fan of breakout/breakdown trades but the exception is where there is a clear case for people getting stopped out and some size on your side going into the break.

In tihs video we start off with the majority of volume traded between 026-029 just above the lows. We know if those lows break, people will get stopped out. We also have the DAX open as a related market to use for confirmation.

We start off with about 6000 sells vs 5700 bus on the strength meter. We can see the tape is mostly bearish – large sell orders had gone off prior to the start of the video

0:00-1:25 – patiently waiting for a sign it will break.
1:25-1:40 – start trading into 025 and it breaks – Vaidas hits the 25s just before they break
1:40-2:00 – large sellers come in – you hear the ‘block sell’ alert
2:00-2:40 – Dax breaks down and FESX moves a few more ticks down
2:40- 3:59 – Now we see some buying into 024 but it can’t break . Large trades both sides but the strength meter showing the sellers are the majority.
3:59 – 4:13 now we have 8246 vs 6881 on the strength meter (I would have reset it on entry of the trade personally) and we have ticked back up through 024. At this point, we are at break even and I imagine Vaidas was nervous! Of course, the move up was very slow, so there’s no momentum.
4:13 -> DAX starts to break down again and FESX follows. Lots of large trades again. Note how rapid the move down is. Vaidas exits for 4 ticks.

As he says in the video – the trade did not go 1 tick against him.

Patience pays off.

Recording, reviewing trades really speeds up the learning process.