I read that market makers scale in much more than retail traders so I wanted to try it.
ROC on INDU reflected bullish divergence so, although I noticed H&S in ROC it didn’t hold any special meaning for me as it was tiny. ROC indicated INDU move down was coming to an end (which held true). [...]
I calculated risk reward for a potential short on the bearish marubozu. Glad I didn’t take the trade. Look what happened. See the violent reversal. Shorts got clobbered. That’s what happens when you short into support.
But I have to stop thinking like this and remember first and foremost the cyclical nature of price. It normally [...]
This is a pretty picture. Notice how the 23.6% fib and then the SMA(9) provide textbook support of Intel Corporation (INTC).
Here is what missed opportunity looks like (boo-hoo). This is a bounce off of the SMA(50). Obviously traders had these orders in. The move was constrained before the 5-min candle ended, but nevertheless there was good scalp here at 13:40. It doesn’t take that much intelligence to enter the buy order, does it?
In contrast, consider [...]
When scouring for news I need to be more precise. Some CNW news came out early and I didn’t even notice. Instead I traded on news coming out afterwards and I wasn’t aware of earlier CNW news. So basically I missed the CNW move.
Another idea: after entering a trade, pretend like [...]
First ever contrarian trade (AAPL). I should have exitted after bearish red candle proved me wrong.
I entered short Nutrisystems (NTRI) because of some news about a 5M “impairment charge”. Classic case of cutting winner short. I needed to wait 45 minutes and then I would have gotten some nice encouragement (and money [...]
I should have studied the daily before entering. Seeing the RSI as entering overbought territory and the price so far from the SMA(50) should have warned me the entry was dangerous.
Also check out the MACD on the daily before considering an intraday entry.
Do multiple timeframe analysis.
Monday morning the Apple target was raised to 250.00 from 245.00 at Thomas Weisel. Gap up in the morning, huge bullish candle. Strong market environment.
No wait, I think the market at +54 could be termed positive, but there was not a huge triple digit rally going on. I notice that triple digit rallies support price [...]
I’m spending the day trying to understand bonds and intermarket relationships. So I took the intro at http://www.investopedia.com/university/bonds/bonds7.asp which was enlightening. Again, it stupefies me that these basics aren’t taught in high school.
As far as intermarket relationships go, yes I read the John Murphy’s tome but here is a great website which seems to summarize [...]
I am posting this to show how OBV and ATR could encourage one to keep riding the trend through a small headfake that occurred about an hour after entry.
The headfake probably would have caused me concern because it was preceded by a pretty long consolidation.
I probably would have exitted because the trade not only did [...]