Sunday, April 22, 2012

Trading Plan: S+P and Dow trading rules

The closing price of the S+P index is very important:

ideally I go short at a prior closing price
or long at a prior closing price

if the market opens above prior day high its and outside gap up, in that case I try hold on the long trend but usually there will be a sharp move down followed by a rally to 50% of the last down move then I short

if the market opens inside the range of prior day but much higher than the close I am looking for short setups to fill the gap

vise verse for if the market opens below prior closing price.


On the dow its wise to simply go long till the end of the session if the market opened above prior days 50% line:





1 comment:

  1. Hello Friends,

    In trading to know S+P rules is must necessary. The closing price of the S+P index is very important. And this also this blog has a graph which shows the information about market closing price which helps a trader. Thank you....
    Trading Systems

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