Thursday, May 07, 2009

Another trick to use




Another arrow in my trading quiver is to closely watch the 5 minute clock. In this instance SKF SRS FAZ have been in an extended uptrend all day. Going into the afternoon session the momo slowed down and they started to drop.I sold the longs and went short. The coresponding volume rise in the markets was minimal so it said to me that a quick drop then a pop back to new highs was a greater probability. The trick is to feel/see  the momentum change right when a new candle appears. I  covered my little shorts and went long. The risk is minimal if I'm wrong. If I'm correct then I've gotten a good jump on everybody else.
First chart is FAZ.



SKF









SRS

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