Wednesday, September 22, 2010

GAME ON!!!!!!!!!

I entered short today after the very long time holding. First I would like to take a look at the bigger picture before we get in the the micro chart of the trade of 3's. The 3 chart time-frames are (daily, 60 minute, and 30 minute). I'm not going to post the daily chart, but take a look at my public charts if you want to see it. The main thing for me is that you see bearish divergence on the CCI (20) on the daily and RSI is topping at 70. A lot more information is in the 30/60 minute charts. This is a "type 2" trade. If you want to know more about this type of trade please see my notes on the right for more information.

Ok, so big picture first. Here is a very extended 60-minute chart to capture the full picture. I see a down turn were we are held within the MACD trends. Also if you look at the average over the last 4 months of the ADX the + and - DI have reached topping and bottoming levels. This is definitely overbought based on this history. You also see my target exit that also falls in-line to a retest of broken resistance trend and also the 50% retrace from the most current rally 1040 - 1150. You also see a very similar pattern in the RSI from the last trend change.

Now for the micro chart, the 30 minute chart. I might of got in short too soon, but I took the risk. the 1130~ish HARD resistance line from previous highs now turn support needs to be broken. Also you have a very solid up trend in place still. Tomorrow we have some very tough levels to break if we head down. (see chart, yellow spot for tomorrow), If broken I see us heading down to the MA's ranges. I'm planing on an exit near the 50% retrace but the 200/150d MA range is another touch zone to break. If your low risk and are following along, this might be a good exit at the 200/150 day MA range to see if that is broken. Play the risks as you see fit in your trades.

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