Saturday, February 19, 2011
Week 07 FDAX Sideways, Nasdaq LONG, Crude Oil & Euro SHORT & LONG
I learned this week to exit trades on Crude Oil if we are in a range day at the opening range + opening range.
I also learned to pay close attention to the volume as it can indicate when trends start and end.
Across all markets I can see the stochastic indicator providing good entry and exit signals if we are in a range bound not trending situation. So on the lower timeframes (30 sec) especially divergencies on the stochastics (14/28) indicator give excellent re-entry chances. On the 10 min chart the stochastics lets you short rallies (at double tops) and buy dips.
On the euro the fibonccie levels (38,2% 50% 61,8% of prior days range) was very important, once there was a short setup at the 50% level the market traded sharply downward but on thursday bounced off the 38,2% level and on tuesday off the 61,8% level)
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