Thursday, December 11, 2014

Web update ...

ES has rallied dramatically for a few weeks. The past few days have shown strong up moves. Our daytrade system came into today (10/28/14) calling it a “sell day” because of the past few days strength. After this strength, a trader must ...


ES Turn
5 Minute Bars, 24 Hours
The stock market “tanked” overnight. However, the weekly and daily trends are both up. Therefore, you have to look for buys. 
ES gave a great buy signal. Price formed a Head and Shoulders bottom in the first 3 hours of trading. The Head and Shoulders are labelled. The right shoulder is extended into a “handle” formation.
The breakout happens at 12:35 around 2045. 
The distance from the head to the neckline is the target distance for the projected move above the neckline. This is shown as green arrow. Price goes right to this level around 1257. Which is very close to the previous day’s close.

Emotions, Part 5

A trader must handle Complacency. This can occur after a long winning streak. Always maintain proper leverage. This is NOT the time to double or triple up. Or, risk it all on the next trade.  As my father says “your worst drawdown is always ahead of you.”  Plan accordingly.