Monday, March 23, 2009

Comments on Comments



MaxFactors comments in the last post are good. But with any trading plan, make sure you know how much you want to risk in any trade. As we just experienced, short-term trends can change suddenly, as just happened as the market still sees the 800 level as resistance.



Here is the Discretionary / Staples Ratio with the 200-period EMA.



However, be aware of days like above. Use these tools as tools, and not as a mechanical trading plan.
Charles

1 comment:

  1. so much about the 800 level ..... resistance becomes support

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