Observe & Trade*

Wednesday, January 12, 2011

Showing the 5-min. chart from YM (DIA) and NQ (QQQQ) that was just traded.

The market gap up and bought for a long trade when it drops after the open.

Amateur open the market, pros take the opportunity!

Took 7.25 points from NQ ($145.00) and 25 points from YM ($125.00).

Not bad for less than an hour of watching.

Just to show this 3-min. chart from TF wherein the "h" pattern I pointed out in my previous post about the short trade.

Notice the previous close was hit then it bounced.

That was the sign to exit the short trade.

Though it can also short from the R1 but the most probable to confirm was at the "arc" on the "h" pattern.

Showing this 5-min. chart from TF.

One can find a long trade before lunch time with the rising 20MA.

And another trade, a short one, showing and "h" pattern type.

Sometimes recognizing a pattern such as this chart can give us an edge.

Not a good day to trade today for the market movement is erratic.

Can't find a nice location to trade though there are some areas that seems probable but not for this observer.

The market was controlled by the quants or the whiz geeks.

The market today is not for discretionary trading in my opinion.

Showing the 5-min. chart from TF (Russell 2000) and NQ (QQQQ).

Both of them penetrates above the pivot and the previous close.

These are the kind of setups that are low risk entry.

Showing the 1-min. chart from DJ-30 (YM).

A fast short trade netted 20 points ($100.00) for a contract.