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Monday, April 30, 2007

Box Play: Copper Futures

Summary

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My head just wasn't into copper today, so I played it real conservative (and perhaps even a little fearful), and scalped it a few times for 30 points here, and 20 points there, plus one 5 point loss.
My biggest play was the one highlighted in the above chart, but I wimped out, and bailed once I had my miniscule 50 point profit. Had I trailed my stop properly, I could have ridden most of that down swing.

This was the first time that I observed in real-time, the much written about Box Play chart pattern. I didn't think a stock daytrading pattern would show up in futures trading, but I have been proven wrong in today's example. The pre-requisite setup for the box play is two (or more) tags of support, and two (or more) tags of resistance. Then you have a double top versus a double bottom. As noted in MtM, the break of that range is good for a move that is comparable to the size of the range.
The box play setup was very textbook (and also turns out to be the only big play of the day) - you would be hard pressed to find a better setup than that.

3 comments:

john said...

nice box playmo

Richard said...

This box play does look very good. Don't forget that, after the fourth touch, it does need to retrace into the box some before breaking out (guideline is 25% retrace at minimum). This one fits; I just didn't see it in your description.

Phileo said...

Thanks guys.... hopefully this will show up again in one of the futures markets.....