*Updated* POT - Potash - Trendline break / Negative Divergence
I'll post the chart up a bit later, as I wanted to highlight it from a few different angles.
I missed a great setup in C as I lost track of it and forgot to put in my order.
I also passed on a short on JASO.
Today was a good reminder of how much of a difference nightly preparation can make. I was pretty busy this weekend and didn't get to weeding the watch lists, or looking at a single chart. I plan on taking care of that tonight.
**Update**
Here's the chart of Potash. I didn't have the time to include multiple views like I wanted, but the 15 minute chart covers most of it. If you pull up a 5 minute chart, that would better illustrate the entry point and how volume drops off on the upside.
POT did continue to fall, shortly after I covered, but it was still a nice quick gain. It was hard to have a substantial downside target on Potash, as there was no real technical pattern. It was just a trendline break + negative divergence.
(Most technical patterns have you add the height of the formation to the breakdown or break out point. If you took the greatest height of this 'pattern', it would be about ~3.5 points and subtracting that from the breakdown point of 225.50, you'd get a target of ~222, yet the POT ran all the way down to ~218.50.)
If anyone has any suggestions on how to come up with a more accurate downside target, please let me know.
Here's the chart:
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