August 19, 2008

Moving averages slope down, Stochastics up, MACD up -> $200 profits

5 min Emini Nasdaq 100

Moving averages are sloping down... Price gapped down from the opening bell.. Today is obviously not a day to go LONG..

I waited for a chance to go short and the chance came when stochastics and MACD was cutting down the signal line, I shorted 1 contract at 1923 and exited at 1913 when stochastics cut up the signal line again.. Profits of $200.

Author Michael Taylor : 5:01 PM | comments (0) | trackbacks (0)

August 18, 2008

Resistance at Moving averages, Stochastics down, MACD down -> $260 profits

5 min Emini Nasdaq 100

Hi,

Today's trade is another classic pattern. Price plunged from the opening, I did not enter... I was waiting for some confirmation.. It then rebounced and found resistance from the moving averages..

There is good risk / reward if you place your stop loss just above the moving averages.. The resistance from the moving averages held and stochastics and short-term MACD started to move down, cutting the signal line.. I entered one contract at 1952 and exited at 1939 when stochastics and short-term MACD cut their signal line and started to move up.. Profits of $260.

Author Michael Taylor : 5:57 PM | comments (0) | trackbacks (0)

August 15, 2008

Bounced from moving averages, Stochastics up, MACD up -> $200 profits

5 min Emini Nasdaq 100

Hi,

Market is still in the undecisive stage... But there is a long signal today.. The classic long signal..
First and foremost, moving averages are not too close to each other.. and slightly sloping upwards.. This is pretty important..

Price crashed down all the way from the opening bell to find support at my slowest moving averages.. This was coupled with an upturn in Stochastics and Short-term MACD... I longed 1 contract at 1959 ..

Notice how price found resistance once more when it reached the opening price? Stochastics and short-term MACD also turned down.. I exited at 1969 with profits of $200.

Author Michael Taylor : 5:51 PM | comments (0) | trackbacks (0)

August 13, 2008

Moving averages flat, candlesticks short -> NO TRADE

5 min Emini Nasdaq 100

Hi,

The same situation continued from yesterday... If you based your trading decision only on short-term MACD and stochastics, you will find a LONG signal,

But, if you are watching the market on the whole, you will notice that the moving averages are still flat, candlesticks have short bodies just when stochastics and short-term MACD are cutting the signal lines.. This isn't the right condition to enter the market..

Novice traders will look at this chart and say.. If he'd been long, he would be making $$$... You can only know this from hindsight... My judgement is based on real time market conditions and they did not seem right to make the plunge.

Author Michael Taylor : 5:33 PM | comments (0) | trackbacks (0)

August 12, 2008

No trade today... Market in corrective phase again..

5 min Emin Nasdaq Emini 100

Hi,

How is it going on lately? The market is quiet again.. The number one factor that I dislike is here again..--> Moving averages are almost flat.. You need at least some kind of slope to trade... whether up or down.. it dosen't matter..

If its up,, high chance we will go long,, if its down, high chance we will go short... Next, look at the stochastics and short-term MACD is this something you will expect in a good trading market? zig-zag patterns with no clear symmetry, close to the zero line.. etc.. Is this good for your trading? Obviously no.. STAY SMART AND STAY OUT.

Author Michael Taylor : 5:45 PM | comments (0) | trackbacks (0)

August 11, 2008

Shorting in an uptrend market ? $220 profits

5 min Emini Nasdaq 100

Hi,

The market i s rally for now and what remains to be seen is how this small rally can carry on... There are bound to be slight corrections even in a rally,, and it is unlikely that price will just sky rocket all the way up up and up...

You might think that shorting here is dangerous. But look at it carefully, my shorting is not without reason and in fact well supported.. Furthermore, there is good risk/reward, if it doesnt work out... I dont lose that much either..

Reasons
1 Price had been above the moving averages for the most part, the moment it cut my green line, I shorted 1 contract at 1955.

2 This was accompanied by stochastics making a turning point and cutting the overbought line.

3 Similar case for the short-term MACD which cut its signal line..

4 My stop loss is at 1960.5, just slightly above the moving average.. Good risk / reward...

I exited only when price rebounded from the moving averages followed by an up turn in stochastics and short-term MACD at 1944.
Profits = $220

Author Michael Taylor : 5:47 PM | comments (0) | trackbacks (0)

August 8, 2008

Market is up... but no trade today.. why?

5 min Emini Nasdaq 100

Hi,

If you look at the moving averages, it is slanting upwards nicely... But at the sametime did you notice divergence with the Short-term MACD? This is a good market to go long only on hindsight...

In live trading, I can't find any good signals to go long.. There is a strong surge at the opening bell.. but that was it.. afterthat, price moved in short spurts... with short bodies... dancing aboving the green moving average..

There was no real pullback that we can use to enter the market. Don't be fooled by this chart that it is daytrading is easy.. This chart is on hindsight.. in live trading, you wouldn't see this. You will be wondering whether price is going up or down.

Author Michael Taylor : 5:40 PM | comments (0) | trackbacks (0)