Hi guys,
The market is very choppy obviously but we made a decent day trade non the less and here's how we played it.
First of of all: What does CHOPPY action look like: It's usually low volume up and down price action, usually in tight range action, no follow thru on breakouts, no follow thru on breakdowns. Prices float up and down like ocean waves and essentially go no where.
Here's how we played the chop using UYM. Rather than buying UYM on a breakout which is something i usually do, today we opted to enter on weakness and sold it where we usually would have Bought it. In choppy waters, you almost need to do the exact opposite of what you think you should do.
We bought UYM at 27.35 and sold once it broke to HIGH OF DAY at 27.85.
Almost a 2% gain in 45 minutes.
Not bad for a monday morning trade.
The market is very choppy obviously but we made a decent day trade non the less and here's how we played it.
First of of all: What does CHOPPY action look like: It's usually low volume up and down price action, usually in tight range action, no follow thru on breakouts, no follow thru on breakdowns. Prices float up and down like ocean waves and essentially go no where.
Here's how we played the chop using UYM. Rather than buying UYM on a breakout which is something i usually do, today we opted to enter on weakness and sold it where we usually would have Bought it. In choppy waters, you almost need to do the exact opposite of what you think you should do.
We bought UYM at 27.35 and sold once it broke to HIGH OF DAY at 27.85.
Almost a 2% gain in 45 minutes.
Not bad for a monday morning trade.
1 comment:
I love this methodology. The tape reminds me of last year when we saw a few PPT days while the market made new lows. There was no continuation, only fuckery. Fading breakouts/breakdowns is the edge I think for the next several weeks. Good stuff Stewie.
I wrote this last year, but it could have been written this weekend:
http://www.gamingthemarket.com/anticipating-ppt-days.html
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