Pick and roll times two
The boys did a great job with the opening pick and roll play. They pick your stops, then go without you. Second entry should be taken if you get stopped out, and is often the winning play.
The setup was the 54.5 premarket high, with appropriate stops behind that which needed to be taken out before the gap would be filled.
Sometimes a little patience and selecting the right chart as resistance is the key. Knowing that and doing that , of course, are two different things.
The pick was set at 54.5, stops blown out, and then 15 minutes later the longs rolled over until the 41 gap was closed. Twenty points later, at aÂ new high, the pick was set again as the false breakout pulled back to intraday support in a volatile close.
Buying support and selling resistance is the name of the game. Identifying these areas is the key to successful trading.
Actually, honoring your stops is the key.Â Winning comes naturally when you keep yourself out of major trouble.
I need to remind myself of that often so that I stay humble and maintain the healthy respect for the market that it deserves.
Tradeguider Systems is offering a free seminar Monday July 21 at 1:30 CST US, and a free Ebook by Tom Williams is available. They are one of the “experts” we have listed on our resource page. It should be well worth your time to attend.