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

Sunday, January 9, 2011

Observe & Trade


Showing this 3-min. chart from Russell 2000 (TF).

Shorting TF from the pivot line and exiting it below the S3 can make a nice profit.

If the entry was at 792.00 and the exit was at 779.00, that's a clear 13 points ($1,300.00 for a contract).

Trading this kind of pattern needs patience and concentration in recognizing its movement.

A familiarity is quite important.