Not sure I agree with the point about only shorting under certain EMAs. Technical analysis is useful for getting the best entry/exits as long as the underlying environment isn't changing. If the jobs report had come out worse than expected (which was fairly likely) or too much better it could have very easily caused an avalanche today and no amount of technical analysis would pick that up.
In times where there is a lot of volatility do you stick to mainly technical analysis or do you opt out until it calms down?
Definitely agree with everything else you're saying though.
apologies i did nt really answer your question properly
i use technical analysis - but not always so conventional - and unfortunately cant really say exactly how (as im alittle paranoid after putting in so much time the analysis then somehow then fails)
but i have studied the Dow and any instrument i trade in great length
overall i use technical indicators - many of them, some might say to many - but only ones proved useful and if not useful they are dumped
and alittle P.A, but mostly for P.A its S/R that really counts the most
i tired the P.A thing properly for a yr, some few yrs ago and proved overall to be useless - i had some great trades, especailly in the summer months and then when the big falls came my long strategy was exposed and took some big losses - mostly on Oil
so changed my strategy and system in order to find the trends much quicker
esp the end of trends - where often great support then just fails
we don't really want opt out of too much as volatility is where all the good trades are - although standing aside sometimes is beneficial
which is why i strongly advocate studying the charts and only picking the best trades and when all the conditions are met
as they are met much more often than you would think, so biding our time really makes no difference and gives us much more time to plan the trades and see them coming
and as long as moneys not too tight there's plenty of time to trade in the future as history constantly repeats - and then take the time to learn how to trade the market properly
my best advice is to study the Daily / Wkly and 4hr charts and then think outside the box - because if everyone is doing the same, invariably it wont work consistently
as for shorting the Dow - luckily i managed to short nr the last top after a sell signal - but only to certain support
although did loose abit trying to quess the top a few wks before
so now wont be shorting until below the EMAs
