Trend Analysis Question
Posted 07 December 2009 - 10:07 PM
Oct. SSO - This looked like a major violation of the March trendline in early October.
Combined with the Sell volume & MACD crossover it looked to be a good time to exit long position
A month later it just looked like a pullback to the lower BB and set a new high.
The lower trendline I've draw off that Nov. 1 low didn't get it's third hit till today -
Was I too early to sell? - It looks like it now in hindsite
Same line of thinking on QLD - I saw the trendline break and sold as it got close to touching it from the backside
Now that I think about it - I also used the QLD chart sell to help strengthen my opinion on exiting SSO
I do read this board whenever possible - I remember Tuffy posting an IBD sell - that sticks out
a month later I'm kicking myself for not buying back when it hit that lower BB and went back up
I'd describe my trading style as IT to LT - Not someone who can look at this daily
Just wondered if there's any advice for how I'm looking at and judging these decisions?
Thanks - Scott
Posted 31 December 2009 - 12:02 PM
I'd recommend "Trader Vic -- Methods of a a Wall Street Master" by Victor Sperandeo, truly one of the greatest books ever written on playing the market with technical analysis. His system is a splendid simplicity using price action and trend lines. He covers this exact situation in that book.
Good trading to you.
"If you've heard this story before, don't stop me because I'd like to hear it again," Groucho Marx (on market history?).
“I've learned in options trading simple is best and the obvious is often the most elusive to recognize.”
"The god of trading rewards persistence, experience and discipline, and absolutely nothing else."