Wednesday, February 27, 2013

TWO THINGS ABOUT A STRONG TREND 2/27/13

BOT TRADING SYSTEM

one point range bars

THERE are two things ( more I'm sure) about a strong trend:  There seems to be exits at each new high, and there will be another trade for those that are patient.

In general, look for the second or third hit at the trend line (EMA , etc.) that you are using for a measure of support (bull) or resistance (bear).

TODAY:  bullish trend coming into the open.  Bar 330 and 345 could be entries off the TL.  Better was the gap bar after B5 with an exit (at the high area) when the micro trend line broke.  Micro TL's will occur with in the larger time frame daily TL.  Both have play advantages.  I prefer the micro as it tends to be a quicker in-and-out. From the side you are able to take advantage of the market.  If in a trade and conditions change, traders have a tendency to think " I can wait this out, it will come back into profit soon!".

next opportunity was the TL from B20 to 45.  This was a later trade in the TL around the B35 gap ( price to the trend line) with a MTL break at another high.  B55 came next with an exit at the prior high (1506).

1510 break was considered a short but price failed to run for the bears.  Instead, the trend line was rising suggesting more bullish action.

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