Tag archive for ‘gap and go’
Shorts Bailout on the Bailout
The shorts who don’t understand the power of breakouts at least better understand the power of stop losses.
The logical 70/ 50% target was hit and then some, for technical traders. It was of little concern if you are a fundamental trader.
Bailout of course was the reason, so we may as well play the bailout game. Don’t forget [...]
Jump the creek
One of my favorite patterns in our library is called jump the creek, and today’s play was as accurate as you will ever get.
Maybe that’s because it’s cold here and the creek is frozen.
Rules for all our plays are outlined in our program. They include all the information relevant to the play.
It is sometimes difficult to [...]
Micro-wave
Robert Prechter’s Elliot Wave International is perhaps the most famous of contemporary wave theoricsts.
The main thrust is 3 impulse, 2 corrective waves.
The corrective phase against the main trend is the a-b-c wave; the one I call the microwave. It helps me keep clear what is the main direction we are going next. As a day trader, [...]
What goes up, must come down
Gap up, trap early shorts, consolidate, squeeze them. Consolidate, pull back as profit taking, keep pulling back squeezing the longs.
The numbers change, but the patterns are familiar. A news report like the CPI is an excuse to move the market, and hapless traders get stopped out several times on the short side. Finally giving in [...]
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