Tuesday, February 14, 2012

seeing it clearer

today I only did 2 trades and both were winners but i took profits too early -- they could have been huge.

More importantly -- I was watching -- working on my new -- super simple entry system and nailed many entries that led to waterfall declines. 

The last component I realized -- only short when 33 day MA is rolled over -- or long curling up.  The futures need to digest moves and the MAs are important and will signal the proper direction.

The candles continue to show tails which are very helpful for early entries.  These work very well at key sup/res. areas  (otherwise they may not say much). 

The volume also provides clues of exhaustion -- again --  long tail candles/strong vol. at sup/res. often indicate reversals.  But most of my entries would require a TL break so I get secondary confirmation. 

As a result... this entry system provides very very tight risk control.

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