Tuesday, January 15, 2013

Simple, Not Easy

There's a particular pattern I look for after a sharp selloff and it's pretty simple.  Often /tf or other markets will establish a small ascending triple-touch TL right before a reversal and that's exactly what set up near the beginning of the day. It's a standard entry and often provides big upside with very manageable risk.

It looks like this.

3 bump pattern: Set up before the big reversals, /tf

However, I missed it.  Of course.  And then there was a few bad trades and suffice it to say -- it was a no good, very bad, horrible day for me. 

Once it starts going your way, the correct play is to HOLD AS LONG AS POSSIBLE.  Now the 5/34 moving average idea has been borrowed from a great resource on twitter.  TradingFibz  You should follow him.

And the main idea is so simple, it's stupid.  If the market is trending - then stay with it as long as the 5 period is above the 34 period MA - and today - the ride was around 100 ticks.

The next few hours in /tf looked like this:

/tf:  5/34 fib lines keep you in for a big ride

Now there was more action but this was the big payday which was quite easy in hindsite but somehow I failed to jump on as I was too concerned about the negative ADVN-DECN.  My primary focus -- and system is based on the chart action.  The other signals are there for reference but the chart is what creates or negates the trade.  I forgot that today.  Don't let Signals get in the way of your Trading Plan.  I do it far too often.

I still have yet to see anyone on Twitter who is CP provide a detailed analysis of their winning trades each day.  So I'll continue to provide the perfect trade, even though it was not one I caught.

I'm sure a lot of people did great today.  Maybe tomorrow for me.

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