Confessions Of A Swing Trader
UPDATE 12:48pm EST: So, you want to be a swing trader, ey? All ready to go with you fancy TOS account and your Prophet charts. Well, let’s get to it:
- Step 1: Turn off CNBC.
- Step 2: Pull up the chart above.
- Step 3: Draw a channel, and set the center line.
- Step 4: Go long at the lower boundary, go short at the upper boundary. If you want to get really down and dirty you can even play the 50% line as highlighted.
- Step 5: Profit!
Seriously – this channel is almost magical. Let’s say the center line gets breached – just set a tight stop and then get back in at the top boundary.
Yeah yeah – I know – at some point we’ll breach it and rally up hard. But until that happens swing traders should take notice. Mabye also watch the Zero for momentum changes.
Bummer I’m not a swing trader – not my cup of tea. But that doesn’t mean you swinging rats shouldn’t bank coin.
UPDATE 1:08pm EST: I am looking at the Yen and am surprised at its continued slide to the downside.
Based on what I see there is another possibility to count the tape of the last year. Any [intelligent] input would be welcome – I remember someone here is actually doing an EWT count on the Yen but I never had a chance to check it out.
We could put in at least an interim bottom here soon however – the Yen is massively oversold at this point. Even if we continue our drop we should see a day or two of consolidation to sweep some of the stops.
UPDATE 2:19pm EST: ES is re-testing S1 right now – I don’t sense much strength. Perhaps we’ll get some PPT buying around 3:30pm – otherwise I expect to see further drip drip drip. The road to hell is long and painful – and paved with good intentions.