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

Friday, December 24, 2010

Observe & Trade


Looking at clearly this DIA chart (YM in the e-mini) which was traded in early after the open produced some interesting pattern.

It is an extended right shoulder (or left, it depends where you look at it) forming a HS pattern.

A probable short clearly shows when it suddenly drops big time.

A seasoned trader can easily spot this.