December 6, 2012
- in Uncategorized by schooloftrade
Mini-Russell day trading plan
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| Mini-Russell day trading plan |
We are
trading at the highs of the bear price-channel and inside the range from yesterday. This tells us two major clues. First, we know that an inside-day tells us to
buy-the-lows at support and sell-the-high at resistance. Second, being at the major highs of the range
we know the high-percentage-trades will be short.
trading at the highs of the bear price-channel and inside the range from yesterday. This tells us two major clues. First, we know that an inside-day tells us to
buy-the-lows at support and sell-the-high at resistance. Second, being at the major highs of the range
we know the high-percentage-trades will be short.
As price
falls lower I have to look for short term buying opportunities at the PLOD 813.9
but when I get new lower-lows below the PLOD I am looking for the sellers to
show strength in the price-action and I will look to use a wave-pattern-short to
enter with the sellers. Profit-target on
the short trade will be 807.5 and 802.5.
falls lower I have to look for short term buying opportunities at the PLOD 813.9
but when I get new lower-lows below the PLOD I am looking for the sellers to
show strength in the price-action and I will look to use a wave-pattern-short to
enter with the sellers. Profit-target on
the short trade will be 807.5 and 802.5.
Remember what
happened on Wednesday? We moved all the
way from PHOD down to PLOD. Once we
tested the PLOD we saw the speed slow down, momentum oversold, and the sellers
were nowhere to be found. Price sat on
top of the PLOD for hours, and then we got the price-reversal and took it back
higher.
happened on Wednesday? We moved all the
way from PHOD down to PLOD. Once we
tested the PLOD we saw the speed slow down, momentum oversold, and the sellers
were nowhere to be found. Price sat on
top of the PLOD for hours, and then we got the price-reversal and took it back
higher.
The market
personality on the Mini-Russell is the most important factor as we test the PLOD. If we see strong sellers and lots of speed as
we push through the lows we will sell short.
personality on the Mini-Russell is the most important factor as we test the PLOD. If we see strong sellers and lots of speed as
we push through the lows we will sell short.
If we do not
see the market personality telling us the bears are in charge we are buying the
PLOD.
see the market personality telling us the bears are in charge we are buying the
PLOD.
The same
technique or theory can be applied to the resistance at the PHOD. If the price-action moves up to the PHOD 827.5
we then will consider selling the highs as far up as 830.0 if we can get above 830.0 then we have a
buying opportunity up to the 834.2 and eventually the final profit-target at
the AB=CD Pattern resistance at 846.0
technique or theory can be applied to the resistance at the PHOD. If the price-action moves up to the PHOD 827.5
we then will consider selling the highs as far up as 830.0 if we can get above 830.0 then we have a
buying opportunity up to the 834.2 and eventually the final profit-target at
the AB=CD Pattern resistance at 846.0
