Posted by racer999 on 30th of Jun 2011 at 08:12 am
I've been following the newsletter for the past several
sessions; but it seems like the technical interpretations on
the indices and commodities is always inconclusive? It can go up or
down - have to see; but we don't need chart reading to tell us
that?
Racer - follow (respect) the trend and be prepared for changes
(or pullbacks) when such patterns begin to materialize (especially
accompanied by divergence). Trading is not about making
conclusions it's about REACTING to what the market is
presenting.
For example, the market was in a downtrend that began to show
signs of a loss in downside momentum along with oversold conditions
and divergences near the lows. That puts you on alert for a
possible reversal that requires a trigger. On Monday, the first
signs appeared with a reversal candle up with a strong close which
was a change in tone. I then said to watch for a trendline break
and a move above the middle Bollinger Band (20 SMA) which would be
another positive sign and point to higher prices. What followed? A
move to higher prices.
The chart I posted early this morning on the futures shows a
potential ending diagonal accompanied by negative divergence
telling one to be on the lookout for and end of the recent push.
Now one needs to look for a trigger in accordance with the time
frame they trade (no trigger - no trade). The market is rarely
black and white but often gray and you must accept that and get out
of the notion that someone can tell you exactly what the market
will do everyday. You build a case based upon the technical factors
and then trade accordingly.
I've been following the newsletter
SPX Futures 60 Minute
Posted by racer999 on 30th of Jun 2011 at 08:12 am
I've been following the newsletter for the past several sessions; but it seems like the technical interpretations on the indices and commodities is always inconclusive? It can go up or down - have to see; but we don't need chart reading to tell us that?
Racer - follow (respect) the
Posted by steve on 30th of Jun 2011 at 09:08 am
Racer - follow (respect) the trend and be prepared for changes (or pullbacks) when such patterns begin to materialize (especially accompanied by divergence). Trading is not about making conclusions it's about REACTING to what the market is presenting.
For example, the market was in a downtrend that began to show signs of a loss in downside momentum along with oversold conditions and divergences near the lows. That puts you on alert for a possible reversal that requires a trigger. On Monday, the first signs appeared with a reversal candle up with a strong close which was a change in tone. I then said to watch for a trendline break and a move above the middle Bollinger Band (20 SMA) which would be another positive sign and point to higher prices. What followed? A move to higher prices.
The chart I posted early this morning on the futures shows a potential ending diagonal accompanied by negative divergence telling one to be on the lookout for and end of the recent push. Now one needs to look for a trigger in accordance with the time frame they trade (no trigger - no trade). The market is rarely black and white but often gray and you must accept that and get out of the notion that someone can tell you exactly what the market will do everyday. You build a case based upon the technical factors and then trade accordingly.
Of course
Posted by zach06 on 30th of Jun 2011 at 08:20 am
IF we new for sure... we would all be rich . I'm thinking of getting the Almanac from Back to the Future... Remember BIFF??