Look at the 38.2 - 50% area on a retracement. The 50% would be
backtesting the breakedown and the 38.2% area was previous support.
Only short on a clear reversal from there with your stop a close
above the high of the reversal candle.
If you bought on the divergence of the STO & RSI and the
reversal candle the stop was the breaking of the low of the
reversal candle. The divergence is still in place and we are
getting a bounce now. Because this is a strong downtrend one should
rather look to short bounces than to buy pullbacks.(dont bet
against the trend)
most of them are canned formulas built into Strategy Desk. I
added formulas for S3 and R3 based on floor trader pivot formulas.
I posted this
linkpreviously that goes over all the formulas
and lets you calculate them. Most are the same as you'll see under
Resources on the left of this BPT page. Lost S2 BTW
$SPX5 with fib numbers
$spx5
Posted by kobie on 7th of Jan 2011 at 11:55 am
Look at the 38.2 - 50% area on a retracement. The 50% would be backtesting the breakedown and the 38.2% area was previous support. Only short on a clear reversal from there with your stop a close above the high of the reversal candle.
Also note the divergence on the RSI and 14 & 60 period stochastics
Posted by kobie on 7th of Jan 2011 at 12:04 pm
No divergence on the MACD(my favourite) so any retracement could be tempory. Lets see what the market tells us.
If you bought on the
Posted by kobie on 7th of Jan 2011 at 01:03 pm
If you bought on the divergence of the STO & RSI and the reversal candle the stop was the breaking of the low of the reversal candle. The divergence is still in place and we are getting a bounce now. Because this is a strong downtrend one should rather look to short bounces than to buy pullbacks.(dont bet against the trend)
Thanks for your updates Kobie.
Posted by jambo1 on 7th of Jan 2011 at 01:05 pm
Thanks for your updates Kobie.
wave 4 of some sort
Posted by perthx on 7th of Jan 2011 at 12:13 pm
setting up the positive divergences when wave 5 come in....but that is so short term ....
The 38% level lines up
Posted by bkout3 on 7th of Jan 2011 at 12:00 pm
The 38% level lines up with S1 and the low of yest. which both might act as resist. S2 was support
bkout3, how do you get your levels?
Posted by kobie on 7th of Jan 2011 at 12:24 pm
most of them are canned
Posted by bkout3 on 7th of Jan 2011 at 12:34 pm
most of them are canned formulas built into Strategy Desk. I added formulas for S3 and R3 based on floor trader pivot formulas. I posted this linkpreviously that goes over all the formulas and lets you calculate them. Most are the same as you'll see under Resources on the left of this BPT page. Lost S2 BTW
bkout3,thnx
Posted by kobie on 7th of Jan 2011 at 12:46 pm
there are good pivot levels
Posted by Michael on 7th of Jan 2011 at 12:32 pm
there are good pivot levels in the market lab section of BPT...