'Trading is a process of observing the market's action until such a time you can find and form trading ideas and get involved.'**

Thursday, December 16, 2010

Observe & Trade


Showing a 2-min. chart from DIA (YM in e-mini futures).

It open below but turn to bullish mode after a couple of hours into the trading.

In trading, the first hour is the volatile part.

You can notice, the bears and the bulls are tagging each other until the bulls overcome the battle.

The safe entry is at 114.75 with the ascending 20MA as the confirmation.

Exit at 115.15 for a gain of +$0.40 per share.