The key to this strategy is to trade in a choppy market by decreasing the time frames and ctaching longer trends on smaller time frames. My way of fighting a choppy, low volume market. I wanna scan for high volume gainers/losers, dollars gainers/losers. I wanna see a stock moving in a strong trend up or down and catching wedges, pennants or flags(which typically depict the 50% mark:'the pause that refreshes' in a trend and catching those plays. A STOCK NEEDS TO BE IN A TREND, that's the key to this strategy. I'll toying with it next week. Unless we see strong directional movement and i'll increase my time frame to 5-10min and try and ctach bigger moves.
Please read this link and you will see the method behind my madness:
http://www.chartpatterns.com/flagsandpennants.htm
Trade Smart!
5 comments:
Hey Stewie,
I hope you are having a good weekend.
I caught your comment about commodities falling on WS.
What is your reasoning for making this comment.
Thanks
PIK
hey pik. check out the previous. i renamed it. commodities look to be running out of 'gas' here. they broke down hard last week and we saw a very feable attempt at a rally. very weak MACD/RSI on the raly attempt. I expect to see them come tumbling down for a week or two.
Thanks.
I find it interesting that the gold and silver index broke down on an ascending traingle. If you apply Fibs to the the silver chart it is really only on a retrace and still healthy IMHO. It bounced at the 38% level and looks like it will test it again.
it broke from a rising wedge which is a bearish formation. and the violence of the breakout makes me think this was strrong distribution and not just a small pullback and new highs around the corner. I do not thimnk that the commodity bull market is over by any means. i am just addintional weakness in the coming days. probably more deleverging in the days to come. no reason to think the longer term bullish picture is coming to an end right now.
stewie, I've been zooming in to 1-2 min charts the last couple of days myself. I was actually short POT but got scared out of the trade when I knew I should have held on. I'll be scouring the smaller time frames again next week, and I think we should see more selling early on.
Post a Comment