Wednesday, December 9, 2009



The market closed above both today's and yesterday's Point of Control. A bullish finish.




If the market should trade above 1097.50, which is resistance, we may see a range expansion tomorrow.



Swing traders entered the market once a became clear that the market was unlikely to trade below this morning's low. The $TICK at the lower Bollinger Band were good long entry points.
Charles


3 comments:

  1. Good stuff Charles. Simple and to the point!

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  2. Charles,
    Brand new to your blog but I would be curious if there is one place where one could view your trading methodology. I feel that just jumping in I'm getting bits and pieces but I can't see how you trade day in and out.
    Thanks and thanks again for your help on the cumulative tick - works like a champ.

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  3. Thanks for the comments Awais.

    Hi Kuch,

    Not really. Basically, I try to trade off of test of support and resistance. This can be overnight highs and lows, a previous day's high or low, and so on. Everyday is a little different.

    As the market test these areas, I look for $TICK divergences, or market structure signals. If the market bounces off of support or resistance and reverses, I look for new highs or lows, and then a small correctiion with the $TICK hitting a Bollinger Band, and that is when I like to enter. If it trades though support and resistance, then trade the breakout.

    That is the type of thing that I try to do.

    Charles

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