Thursday, March 09, 2006

20060309 e:38 pm. the breakout bar (see rectangle area) came on the gap up bar today. Symmetrical triangles, or consoidation patterns can sometimes be a clue to what is about to unfold. The key is patience, unlike yesterday where we tried to force shorter trendline breakout, which in the end did eventually work. Let's review what made the odds in this trade: 1) A period of consolidation in triangle/wedge (building up energy) 2) RSI momentum above 50 and strong and 3) This morning the Japanese Nikkei 225 futures had a strong parabolic run up. (normally this is extraneous, but toda was a strong enough supporting factor) Posted by Picasa

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"There is the plain fool who does the wrong thing at all times anywhere, but there is the Wall Street fool who thinks he must trade all the time."J Livermore Manchester City FCl Crude Palm Oil

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From Dragons and Bulls by Stanley Kroll
Introduction and Foreword
The Importance of an Investment Strategy
5 The Art of War, by Sun Tau (circa 506 BC) and The Art of Trading Success (circa AD 1994)
That's the way you want to bet
Long-term v Short term trading
Technicals v Fundamentals
Perception v Reality
Part 1: Winners and Losers
Part 2: Winners and Losers
Sun Tzu: The Art of War
Those who tell don't know, those who know don't tell
Why there is no such thing as a "bad market"
The Secret to Trading Success
The Experts, do they know better?
Risk control and money management
Larry Hite: The Billion Dollar fund Manager
Systems Trading:Kroll's Suggested Method
Buy the Strength Sell the Weakness
Good advice
The 'good bets' business by Larry Hite
Don't lose your shirt
Ed Sykota's secret trend trading system