Anatomy of a Short

This was a text book short on the USO. I caught all the major sell offs and used the attached schematic to make my best trade(s) of the year shorting crude. Thanks to Semi for turning me onto Wykoff. If your looking for a quick study on volume and price this schematic is a great read.

1. You can see the distribution at the top before the first decline.

2. You can see the upthrust after distribution (UTAD) after the first sell off (lower high).

3. You can see the professionals pushing up prices for final mark up and the last point of supply (LPSY) and the lower high.

4. Then the sell off after the final mark up.........

5. Identifying the Signs of Weakness (SOW) really helped me stay in the trade during the volatility.

6. The schematic explains the volume analysis better than I can but you will see how the volume supports the action in price.




http://stockcharts.c...97098&r=715.png

Edited by hedgehawk, 31 March 2008 - 06:47 PM.

Thank you for that link

Hedgehawk, Congrat's on the trades, and thanks for the link. Looks like some really interesting info. Best of Luck, UBW

hedge thanks for the confirmation ... i sold my puts today and made a nice % return. What do you think of FXE for a short play ?

Hey thanks and good trading to ya. Also don't know anything about FXE looks parabolic.