Day trading the DOW 14/04/03

ChartMan

Legendary member
5,580 46
China- no clear answer here BUT the move was preceded by an Inv. H&S whose target was 8400. It ONLY just made that, so waiting a couple of ticks would have confirmed the non continuance. Also, rallies off the 100 MA usually only have a small pullback to the 100MA before taking off. Sure, you can take a chance, and you may be right some of the time and get in early for big rewards. Playing safe will always take the break of the high AFTER the pullback. Clearly here, we didn't get that here.
Tortoise.... Take a closer look at your first short- nothing wrong with the entry, but your cover for - 30 must have been right at the peak- I make it exactly 100 MA +20. Here RSI was 70 , and it's not gonna rocket from there.....
Just a reminder about the points to RSI ratio, that move was 1:1 indicating no strength either way.Close call- great pity as it would have set you up for the day. I can't complain, as I said yesterday I screwed up just as bad.
Second point, corny I know, BUT the trend is you friend. Your second entry was AGAINST the 100 MA, trying to call a bottom- just like me. I saw the divergence too.......And we were bouncing off the previous flag target at 8320. A resonable gamble enrty.
As I have said many times, I try to instill "safe entries" as a strategy for profitable trading and that was not a "safe" long. I have to admit that I too suffer from impulsiveness at times, and I pay the penalty. :(
Today was a different story, taking an early 880 on ES and closing at 892.5 just before the close.That was at 15:00. I could have waited till 17:00, and taken the "safe entry" and still got the same........ Pays to wait? :cheesy:

China - I see the bear flag too and I think It'll go. Target 8500.
 

ChartMan

Legendary member
5,580 46
Please guys, tell me you got the triangle break. :cheesy:
Another easy day after this,taking the ride to the 3 peak ND top.Closing and going short would have gained some more points( almost none on SB), so long as you covered on the double bottom at 8300, just below the 100MA. Clearly there was horizontal support along 8300. Now there was an reverse triangle forming,( 8300 base and the ND trend line) and a rough guess(minimum) target was 8350- not quite met.
Getting in anywhere in the early session would have meant a long wait, the price never deviating outside the 100MA +/ 20 band. Going short , you should have covered immediately on the triangle breakout...... and then got on the right side. Easy afterwards, isn't it?
 

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