Tuesday, November 11, 2008

Momentum acceleration points


One of my main trading techniques is watching for times when the markets seem to accelerate and I can get a jump on the trend.
I pay close attention to 5 minute charts of the QQQQ and S&P 500. Here is a snapshot from today. Green means markets are rising. * (This turned out to be the starting point of a 250 point DOW pop and drop)





At the same time here is the 5 minute chart from EEV;












and here is SRS








A few minutes later the market momentum is slowing and is offering up the money, so it's prudent to take it and trade them the other way until the signal says not to and go the other way again





SRS + $ 6.00












EEV + $ 4.00

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