Aweful day to trade. What happened mid session? My Sierra charts is about to expire and I can only log on in trial mode.... Looking for a hold of 9440 ish and breaking to the upside, to confirm RS switch on the 10 min charts.
This is so useful. I've just got a couple of questions if that's OK.
I spotted the triangle at the start of the day but ended up with a different target. The mouth is from 9490 to 9455 a difference of 35. The apex of the triangle would be just under 9480 giving a target of ~ 9445.
Just after the minimum at around 4pm there was what looked like a bear flag [not very clear I admit] which would have given the 2nd target at 9435? Does this qualify as a bear flag?
I'm not quite sure where your entry signal is after 17:20. The price moves above the ema but is this alone sufficient to enter a trade or should there have been a prior signal with the ema crossing as confirmation 'safe' entry?
On a more general note. When looking for pd or nd do you always look at RSI/CCI maxima not minima?
wj, to me that bear flag looked like a pull back that failed to deliver - dbl bottom and divergence so I closed at that point. However on a longer time scale it did deliver but I wasn't prepared to risk it since it was at resistance @9450 (I think). In theory I should have waited for the full 3peak PD to complete. It could have easily turned into a big rally like so many other days. What do you reckon CM? Was there a case for staying in?
I went long on what I though was an inv h&s after it crossed the 100MA - took so long to do anything after that that I closed at breakeven - out of sheer boredom
WJE, I calculate my targets slightly differently to normal conventions. On triangles, I add the mouth to the break point. Bull Bear flags nearly always have 2 full cycles. Anything less will usually just be classed as a pullback. Crossings with pullbacks to the 100MA are usually enough to secure a good entry. ( NOT always though).
ND tops produce maxima in RSI, PD bottoms we look for minima.
MOM, when there is clear weakness in the market, boredom often forces a close...... only to see the market take off in your direction. :cheesy: A bit like today really......
What a shocker. I've not seen anything like this before. Huge range in RSI for a 10 point swing in the price..... The clue to the big move was the expanding triangle in both RSI and CCI. Hope you were on the right side.....
Your comments about large swing in RSI for small movement in price: I've noticed this happens out-of-hours when price swings are small the RSI still responds with big moves. I suppose it is because it is 'relative' strength i.e. a comparision of the latest move to what went before?
CM, tell me about it (the boredome & closing bit - icing on the cake is the thing heading off in the your direction after u close - &*^%$) - did it again yesterday - didn't want to stay in before the news either. Decided to go home at 19.00 and missed out. Maybe just as well, cos I wasn't in the trading mood and would probably have gone short like wj.