[dpaterso]

Alright alright - I closed the position. You can all call me a 'chicken' if you want.

There was, however, method in my madness:

I had a look at the four hour chart i.e. one timeframe down and I noticed that Wilders' ADX is starting to move up, and Bill Williams' AC has two green bars showing already - and that almost always guarantees a trend reversal coming (at least on the Indices). I even added Stochs to be sure and they are also turning up.

Maybe this in itself is a good way of doing things i.e. work on the Daily / Weekly / Monthly charts but once you have opened a position monitor the four hour charts (or one timeframe lower than the one that you are working on) - that way you could get a warning that there is a reversal coming.

Anyway - I'm out (although I'll leave this same position open at my other broker and see what happens with it. Those are smaller and cheaper lots so if I lose a couple of $$$ it won't be anywhere near what I have just made).

What I will probably do now is wait and see what happens on the Weekly next week. If the first dot appears when the chart opens on Sunday I will go short again and then monitor the same indicators on the Daily Chart and see what happens.

Now don't get me wrong - I know this all sounds like I am going against everything I was trying to preach at the beginning of this thread. I'm not. It is just that this trade was a 'special' case because of the 'ferocity' of the fall. If it were not so 'violent' and 'huge' I would have stayed in this trade until I was stopped out by a Parabolic SAR dot. Shot dot!

Regards,

Dale.