 |
|
The source of the best business, financial and legal news |
|
|
||||
|
||||
|
||||
|
|
|
|
|
 | |
| |
 |
Business Informations |
|
|
|
Day Trading the SP Futures with Initial S/R and the NYSE TICK
For instance, if the market moves up in the first 20 minutes of trading, touches the initial resistance zone, and then turns down, this implies that a good tradable downtrend move is likely to develop. How strong that new trend becomes is market-dependent. As the market falls, its reaction to each new support zone gives an indication of how weak or strong the new downtrend is. If the market falls to initial support and breaks down through it without a stall or a bounce, it will probably continue down to the next level of support. But, if the market loses downside momentum near the initial support zone, the downtrend may well be over. When price comes into a resistance or support area, the NYSE TICK is by far the best indicator of what price may do from this point. What is the "TICK"? The TICK is simply the difference between the number of stocks that last traded on an "up-tick" versus the number of stocks that last traded on a "down-tick". When the TICK reaches +1000, the market has reached a short term overbought extreme and the TICK reaches -1000, the market has reached a short term oversold extreme. When the SP futures make a quick surge to a strong resistance zone, and then loses momentum at or near the zone, while concurrently the TICK registers an extreme high reading (usually over +1000), this sets you up for a high-probability short entry, with a hard stop just above the resistance zone. These counter-trend trades "fade" (meaning to enter a trade against the trend) the intraday emotional extremes, and may come at the beginning of a new trend - giving you a chance to hit a "home run." More often, however, they become scalp trades that don't last long, sometimes less than a minute. Either way, they are high probability trades if you time your entry well. It takes a lot of practice to time your entries just right on these trades, and you have to be ready to get out immediately (before your hard stop is hit) if you sense that your edge has disappeared. It is difficult to sense when the edge (probability of success) of a trade is gone *before* the trade changes from a small gain to a small loss. Practice will help *if* you know what you're looking for. Most traders believe you have to wait for your hard stops to be hit before you can know that a trade's edge is gone. This may be true for most traders, but it doesn't have to be true for you. Mike Reed is author of TradeStalker's RBI Trader's Updates. Mike has been trading the Market for 23 years. When he got his start as a trader, Mike was plotting prices on paper tape as the internet had not yet been "born" as we know it today. Years of experience have really given him a feel for the Market action. His support and resistance numbers have been published on the internet since 1996. He has a wide readership that includes day traders, floor traders, locals and hedge fund managers. His nightly support and resistance zones are specific and incredibly accurate. He offers an unlimited free trial of his nightly TradeStalker RBI Trader's Updates. http://www.TradeStalker.com
MORE RESOURCES:
investing - Google News |
|
|
|
RELATED ARTICLES
Love The Thrill of Risk? Invest in an Annuity! With the stock market in steep decline, people are looking for safe places to invest their savings. Many banks and investment companies are pushing annuities. Trend Following Trend following also called momentum trading is the simplest and safest method of stock market investing. It puts you in stocks and mutual funds that are going up and gets you out when they start down. Is Starting A Business For Me? What To Consider Before Starting A Business Do you have the right temperament?Starting a small business is one of the most serious decisions that a person can take in life. Positively, it often results in higher income levels than one could achieve as an employee together with the unique buzz of being your own boss but conversely it also can be stressful, will demand longer working hours and will probably reduce your ability to take long holidays. Gold; What Type of Gold to Buy JewelryThe advantages are:? Gold Jewelry is the easiest of the gold to buy and has the enjoyment of being able to be worn.The disadvantages are:? Retail Jewelry is often marked up by 300% or more in the shops. Just Say NO to Your Stock Broker We have all heard that slogan that started back when Nancy Reagan was in Washington. It was all about drugs. Success Trading for New Traders: What Does Bid and Ask Mean? Do you ever wonder exactly what's going on in the trading pits after you've sent an order to purchase stock? You've no doubt seen market quotes either online or even in the newspaper. Have you noticed that there are always two sets of prices given? What exactly do those mean and where will my order get filled? Let's discuss the basics of the two prices you see. Annuity Investment - The Whole Truth Do you ever feel like you haven't been told the whole truth? Kind of like something is missing? Well, you are not alone.With many investors awestruck over the last several years by the declining stock markets, many feel like they're out in the cold. Consolidation Period The economic data reported Fri showed continued above trend growth with disinflation (at the core level, excluding food and energy) in the second quarter. Real output growth has slowed from about 4% in 2003 & 2004 to just over 3 1/2% so far this year, while a core inflation rate fell from 3% last quarter to 2%. When Its Too Late to Save for Retirement You are 55 years old (or somewhere around there) and your company is going to force you to retire at 65. You have $35,000 saved in your 401K and that's all. Emotions: A Traders Worst Enemy; Get Rid of Fear and Greed - Youll be Glad You Did You hear it over and over and over in books, forums, and chatrooms. Fear and greed, fear and greed, fear and greed. The Basics of Tax-Free UK Financial Spread Betting Financial Spread Betting (or Trading) offers a tax free method of speculating on financial markets.Quite simply, if you think a particular index, share, commodity, currency or sector will rise, you place an UP bet. Rules for Simplified Employee Pension Plans better known as a SEP Plans A SEP is a special type of IRA. Under a SEP plan the employer creates an IRA account for each eligible employee, hence the name SEP-IRA. Value Investing By definition, value investing is the process of selecting stocks that trade for less than their intrinsic value. A value investor typically selects stocks with lower than average price-to-book or price-to-earning ratios. Effective Advice For A New Generation of Investors CATCHING A FALLING KNIFEOne of the most common mistakes made by inexperienced investors is trying to "catch a falling knife". This is a habit, common among new investors, of buying stocks that are in "freefall", and it's a bad idea for an investment strategy. Finding False Gold in Penny Stock As far as traders go, many do not see the penny stock as a solid way to do business. Many believe that dealing with penny stock is a risky business. How to Invest Overseas - Intelligently! In recent months, many advisors have talked a lot about the wisdom of investing overseas, but most have failed to really address the way to do that. For new investors, investing in the U. How To Find An Investment Advisor Do you think you need an Investment Advisor? Hold on before you answer because this is sort of a trick question. Also, I am definitely biased because I am an Investment Advisor. CYA You all know what CYA stands for. Of course, Cover Your Assets. Global Markets: A Window on the World Economy Expectations drive the market. Every stock price is driven by what people expect the company to do. Keep Stock Market Investment Profits Have you had one of those huge investment winners - a stock that went from $2.00 to $80.
|
| home | site map |
| © 2006 |
|
|
|
|
|
|
||||
|
||||
|
Comment by Frank O'Donnell
