I had some relaxing music playing in the back ground and I worked on staying relaxed and patient as the market moved straight up through the overnight high.
When I saw that first volume spike I thought the top maybe in but was worried about going against such a strong trend without any other confirmations...so I stayed patient. As the market moved down I was looking for support and a reason to go long and test the high. I thought I might get something at 4788 (ONH) but when it went to test its short term low at 4784 for the 3rd time I started thinking continuation down. Ticks were trending down and below zero, CBA was trending down and BHP had just broken a upward trendline to the down side (see chart below) so I pulled the trigger for a 1 lot entry short at 4783. I wanted to keep my stop at 8 points or less so I chose the ONH and a minor top at 4788 and added 2. I did not take much heat as it steadlily moved lower. I moved the stop just above breakeven when a lower minor top formed.At this point I was looking for a reason to exit (volume or tick spike?). The tick divergence was on my mind and for good reason as I ended up giving back 10 points of open profit. In hind site I could have used the divergence and the small volume spike (noted on chart) as reason to exit but such is trading. Overall I am happy with day 1 of 21. All of my goals were met with a near break even trade (-3) as the result.
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