A trend day that wasn't
Trend days are usually my best days of the month, so I was interested in the opening action today as we had a large gap down. There wasn't much of a pause and the market continued to head downward.
I noticed that when price inched back after the first 20 minutes that it couldn't overcome the resistance that had been support during the first 15 minutes (1st yellow line). I took a position after price bounced off resistance for the third time, waited a few minutes and then BAM, a couple of nice red candles.
That was my only trade for the day as price formed a channel and bounced around all day before breaking out to the upside and frustrating anyone who was short and hoping for a trend day. There were many internal indicators that were screaming that this wasn't going to be a huge trend day down (including the MACD), so I didn't take advantage of the couple of other decent scalps that showed up.
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2 comments:
Stockpunk I have been following u silently for awhile now, and I am interested in becoming a trader also. Could you recommend a couple of resources I could turn to get started!!!
Thanks, Blitz
Blitz,
I started by reading every book I could about trading. The ones listed on the right of the blog are some of the best that I've read.
Reading other blogs from traders who are currently trading is another great resource.
Some of my best learning has come from one on one mentoring. There are a few bloggers and writers who offer it at reasonable prices. I would recommend Corey Rosenbloom at Afraid to Trade if you're interested in the kind of trading that I am doing now. He was instrumental in shifting my focus from stock screening and swing trading to the trades I take now.
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