Monthly Archives: May 2007

I’m sure you’ve noticed that I sometimes “cheat” when talking about patterns and trendlines. Most of the rules you find in Technical Analysis books are designed to keep you out of trouble. Rules like not drawing trendlines through price data. … Continue reading →

The first market report I heard this morning talked about the drop in the Chinese markets, and suggested we might be in for a repeat of the February drop. The gap below yesterday’s low might have hinted at that outcome, … Continue reading →

For some reason my data provider (eSignal) posts two hours of trading on holidays. I ignore this extra data (which plays havoc with my trendlines), and will sometimes start my Fib measurements with the day’s open. That was the case … Continue reading →

I wasn’t thinking about Monday being a holiday until I looked at the first hour of trading. I hope most of you made this into a four day weekend. However it’s surprising how regular the movements often are on a … Continue reading →

Whenever I enter a position, after setting a protective stop loss I begin looking for my first exit level. My compromise between getting out too early and holding a position too long is to trade multiple contracts. Sometimes finding a … Continue reading →

Yesterday I closed the commentary without having any conviction about today’s market direction, but pointed out that continuing moves usually have a large first retracement (50% or more) followed by a smaller second retracement (normally 38%.) Since we closed with … Continue reading →

Usually when I point out a setup, it’s a winner. If you’ve done any trading at all, you know how much easier it is to find the winning entries and exits after the market closes. And it’s easy to miss … Continue reading →