Wednesday, May 23, 2012

NoteTo Self: What I'm Looking For

1. Establish general trend by looking at daily then 15 min. candle charts.

2. Determine areas of major support / resistance based on areas of heavy congestion, places of previous bounces.

3. Watch Market Signals for confirmation.

4. Look for trendline formation on higher timeframes for major topping / bottoming areas.

5. Switch to 1-min candles once market enters key support / resistance area.

  Observation: For shorting a key level, it appears waiting for the 9 day MA to cross below the 33 day is a key signal. As long as the 9 day is clearly above with no breaks... the market will continue to drift higher and pick off stops. This is an easy way to avoid entering too early.

6. Look for heavy volume and key 3-bump or double topping patterns with high tails to attempt a trade.

7. Be  patient with trades that immediately go my way.

  There may be more points I'm missing...  This is an updated general checklist.

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