Tuesday, December 02, 2008
High probability set ups
So if you're trading this momentum style, watch the overall markets and get in sync with the trend. Make sure you can see what the trend is actually doing and not just what you hope it will do. Then take the trade that has a higher probability of happening. Keep focused. Think through the various scenarios that can happen so that you will be prepared to move any direction. Acknowledge that unknown forces can affect the market at anytime so have an exit plan before you enter the trade. Relax. Take the money that the market offers up to you when it says to do so. Build up your cash reserves and confidence. Think of your dollars as your soldiers. Don't commit them to a haphazard battle plan that you can't handle if you're pressurized. Reserve them for the battle that you have an advantage in. Turn off that CNBC, there's nothing of value on it. You don't need news, opinions or indicators to trade this style. Just believe the charts.
High probability set ups
So here we are an hour 15 later. SKF showing a slow down of the trend so I'm covering and going long. $ 12 run that I doubled up into.
SKF.
RIG $ 2.30
OIH $ 2.40 after a little shake out at the start.
Markets pointing down.
High probability set ups
So 30 minutes later and here is where RIG, OIH , SKF AAPL have ended up.
RIG down $2.00. Reversal probable.
OIH down $ 2.30. Reversal probable.
SKF up $5.00. Another good short selling signal here as well.
AAPL up .$70. Continuation probable.
High probability set ups
SKF showed nice HP reverse signals.
Slowing of downtrend. Note green candle volume at bottom is greater than previous two red candles.
Dropping volume on 15 minute chart is clear.
S&P and QQQQ both stalled. Downtrend is probable to occur.
High probability set ups
Here are what high probability set ups look like to me.
As oils RIG, OIH were drooping down near or past daily lows. and AAPL past the highs.
RIG
OIH
AAPL
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