Back To The Basics
Back To The Basics
Okay, I slapped myself a few times and am feeling better now. Whenever things are in flux I go back to the basics – meaning I start drawing lines and I look at medium/long term channels:
Seems we either had a breach and now a retest of this channel – or it was a false break out and I’m going to really kick myself for going into cash earlier today. We shall see…
NYSE A/D ratio has now subseded from 8.0 this morning to currently 2.27. The joys of trading a narrow market without liquidity and dominated by high frequency traders.
2:53pm EDT: On an up note – the ole’ 2.0 BB trade in currencies continues to work just fine:
Here are some basic trading rules:
- Wait for a push outside the 2.0 BB – preferably a large spike.
- If you have access to the 2sweeties’ currency calcs and you are near a retracement level you are golden. If not use your favorite pivot.
- As you can see the reversal should happen within about an hour – otherwise a trend to the upside might be in the works.
- If it goes your way – take profits after about three 30 minute candles – or when you hit an inverse pivot/retracement level.
Anyone trading anything close to this?
