Trade The Trade

2 Weeks till Christams

2011-12-12T06:03:00.021+10:00

Us markets up strongly Friday and now looking to see if any carry on this week, sometimes you get the secondary spike up and then it comes off, that was the 2nd spike friday

Thats the historical pattern for this time of year, doesnt say its going to work and 07 rings in many peoples minds too.

I always like/try to trade with the current trend

http://tc.md.it-finance.com/MDV8/showimage.phtml?id=7cef0432c96719e67add18a9609c425f4a9d372a91f0fe530b6eb5cf6ce0fc5e

Last weeks action here didnt even break the 50% of the range up from the lows
http://tc.md.it-finance.com/MDV8/showimage.phtml?id=7cef0432c96719e67add18a9609c425f4a9d372a91f0fe530b6eb5cf6ce0fc5e

Depending on where your long from ( i was lucky ) thats how i would gauge my risk

Sure there are points on resistance on both charts above and they can offer low risk shorts and given this is a great 144 weeks count on SP,in that i mean if it turns they set up quite easily without having to stand in front of the existing train LOL, though I wouldnt be flexing the tostesterone to close to xmas

OF note last weeks pull back also hit the 195ema on the daily

CASH levels for today
4243/4260/4285

weekly stab 4340/4180. i did want the 4122 hit also last week didnt quite go there maybe the russian instability might do something.

Enjoy the week

310 pm 12122011
Quite a nice session on the CASH with staying within upper and offering a lower long prior to close

DAX 5925/6060/6105 watch 5970 for a reverse to long if it holds, wider time frame im looking at 5800/6200

530am 13122011

Markets have given back the gains from Friday, which in part was expected however will be intereting where to
XJO 50% of the move up around the 4160 and also again I mention the 4122, which are the 2 levels im keen to work risk out on

Today I have 4160/4205/4220, pressure is now on the bull however as above the 2 numbers look important to me

djia 11909/12260 remembering breakout in late november was 11600, lets see how fond of the 12,000 they are, ooops forgot the fib 50% (test of strenght) at 11728 and 38% at 11864. 2 Hourly the last down range exceeded the previous but still in the channel

having trouble posting charts at present i think its somethign to do with the ad block thing i smartly put on LOL

550pm 13122011

XJO today snuggled in between the lower and mid levels in what was an expected quite day, as i look at the chart now i cant help but think the next dip is a buy and would be cool to see the 4122 hit although i still only see the 50% level for now

DAX
i gave some roughies and the weekly was 5800, surprise where we got to last night once through that lower level and here we are
tonight 5750/5870/5925 always got to see the bearish side after huge US down,

preferred action wld be more weakness and then a buy and bare in mind friday is OPEX in US and also end of quarter on 30th

enjoy the night might do some US levels later

530am 14122011

DAX touched the loner level and then up to the mid, and i guess as per last night after the big US down you wouldnt expect much more ? as I type its now back putting pressure on the lower level from last night and a weak US close that will go LOL

US session is in no mans land really and would surprise me to see if give up gains with movement either way into 15/16th

Overnight session on CASH hit yesterdays 4220 but thats cheating LOL

CASH bit early for them but right now I got 4176/4220, why 2 well break either and go with bearing in mind the 4122 is still a thought

HAve Fun

555pm 14122011

DAX i got 5685/5750/5800 not alot there really although I guess the hold below the weekly 5800 looks important, although again like all markets they might swagger till friday on tomorrow, took it to mid and will see if up to upper and beyond ?

CASH

Didnt get to the 4122 and looks to ahve traded around the 4175 most of the time apart from the blip into 4200

Yesterday, I mentioned the fibs on the djia and not quite to the 38% level yet ????
I dont spell check either Im sorry i just type and go :)

Be good to see the bears give the markets a real touch up here, but been so weak since the november lows, would tie in nicely if they did for the opening chart guide

530am 15122011
a
CASH low was 4129 so far with 2 hours to go US session and DAX got to the lower level overnight and also DJIA inot the 38% for now. Was looking for this hit last night and nice to see but more importanly where they take it to.

CASH of course im looking for a reversal of sorts out of the 4122 given its the 15th, but knowing also that OPEX is Friday in the US so it can be moved around some. Identify the risk I want and then play the numbers. Old numbers are 4080 and the 61.8 is at 4110.

Apoart from that I got 4122/4155/4180

430pm 15122011

CASH a little bit below the 55 and 22 given this morning, I sometimes wonder if you even had to wait for the US close to produce an action plan anyway. It works and makes money I guess

DAX now well below the 5800 and once that was broken it has not gone above again which proves it was a weekly level and therefore good to keep in the notebook. Right now 5675 is the 61.8% fib and i know its a fav of many, but when the market moves beyond the 50% its plain WEAK no other word to describe unless you have reversal opportunity, but they should be traded as just that. Daily is now below the 41ema and on that chart i got 5400 showing, so I wait to see if the reversal comes if not, so be it and go with.
DAX 5655/5725/5800

EAsy market at present enjoy the night

530 am 16122011

DAX all but completes from lower to upper again so nice overnight and CASH even got close to the 4185 from yesterday, 5838 stands out on the dax if it was open now

CASH 4200/4175/4122, big cluster price level in the middle there and probably hold the key either way, today look for 4140 if it holds then go up otherwise stick to previous numbers :)
Said it before but OPEX in US tonigt, not that it always work but sometimes you will see it push up or down into the close therefore worth jumping on and also standing aside if you have opposing view at the time.

510pm 16122011

43 and 72 were good, so while 40 was in the 3 it was the obvious spot to buy as such a short term strong horizontal
That DAX level should be hit shortly, the one from this morning and then 5855, but for the numbers
DAX 5855/5750/5701

Will probably focus a little later on the US markets and then trade there close

Enjoy

5pm 17122011
Reflecting back a little and notice how controlled the US close was and quite obvious behind all the talk where they wanted it to close, as per options ex chart.
The DAX again failed at the 5800 and petered out to the lower level although it zipped 50 pts past this which when trading a short you don't mond so much, hit the levels and then trail it.
I will never forget those words from Redbacka " why sell close something if its still making money "
CASH trickled backed down to the 4122 area and I guess no a low volume week into Christmas will probably see this number lose significance.

I decided this week to just blog my thoughts and see how different it would be, and I must say it was refreshing to avoid all comments and opinions. See I would walk in, do my levels and assess any positions I had, then set orders. And only then would I read twitter or other social media sites. I made a pact to myself to not go back and change my orders after reading something elsewhere.
For me I found this amazing, as I not only did the normal trades, but I not once when back and changed a order due to market news, opinions or media coverage of any aspect of the markets. It proves to me that the most simplest of plans and a very simple attitude to markets is all that is required.
I love the markets but in recent times have become very skeptical of the way social media has engulfed our lives and Im the first to admit its addictive and yes I border on it too.I see so many tweets at times which really do make one dizzy with market thoughts on direction and this week proved to me that it can/could really do your head in.
Anyway I am goign to dedicate a bit of time to these aspects over the xmas break as I think any newer traders or younger traders would benefit from knowing our destructive social media is becoming.
Not for one minute to I regret my time on social media pages and in many ways and blessed to have become trading buddies and friends with so many people, and at times to also share personal joys and tough times with others. So don't think Im copping out on mates and traders when you read these thoughts, its just me digging into the inners of social media :))

As I said earlier in the week, no spell checks and no proof read, its straight out the fingers without regret for all to see, enjoy and have a little reflection on your time on social media pages, and make sure this Christmas you go next door and wish those who live closest to you a very Merry Christmas

Regards
Rob

Swings 2 October 2011

2011-10-02T11:50:00.002+10:00

Certainly some interesting set up at the moment, while the world again looks to collapse, I still think its worth not giving up just yet

Respect the trend YES, however be ready in case it snaps the other way

WD GANN 24 Rules

2011-09-17T15:16:00.002+10:00

Rule 1 Amount of capital to use: Divide your capital into equal parts and never risk more than one-tenth of your capital on any one trade.
Trading can be exciting. Money management is intrinsically boring. As a consequence, many traders ignore basic money management rules to their peril. It is no coincidence that Mr. Gann's first rules are survival rules. As Mr. Gann stated:

Your first thought must be to protect your capital and make your trading as safe as possible. There is one safe, sure rule, and the man who will follow it and never deviate from it will always keep his money and come out ahead at the end of every year. This rule is divide your capital into 10 equal parts and never risk more than one-tenth or 10 per cent of your capital on any one trade. You can always find new opportunities to make profits, so long as you have capital to operate with. Taking heavy risks in the beginning endangers your capital and impairs your judgment. Trade in such a way that you not be disturbed mentally by a loss or two, if it comes.

(Gann, W. D., 45 Years in Wall Street, Lambert-Gann Publishing Co., Pomeroy, WA, 1949, p. 17.)

It must be stated that risking 10 per cent of capital should be considered to be the absolute maximum percentage and only for those with smaller trading accounts. Two to five per cent would be a more appropriate percentage to risk for the majority of traders.

Rule 2 Use stop loss orders. Always protect a trade when you make it with a stop loss order 3 to 5 points away.
Stop loss orders are not 100 per cent guarantees of trading safety just as seat belts are not 100 per cent guarantees that one will not sustain injury in a road accident. This is hardly an argument against stop-loss orders or seat belts, however. The evidence supporting the use of both stop loss orders and seat belts is overwhelming!

Mr. Gann was adamant that stop-loss orders should be an integral part of a traders reason for taking a trade. He left no doubt about his views on this subject by saying:

I feel that I cannot repeat too many times the value of using stop loss orders because it is the only safety valve to protect the investor and trader. An investor or trader will place a stop loss order and one time out of ten the stop will be caught at the exact top or bottom. After this he always remembers this and says, "If I place a stop loss order, they will just go down and catch it, or just go up and catch it and then the market will go the other way." So he does not use the stop loss order the next time. The trader forgets the nine times out of ten the stop loss order was right and would have prevented big losses by getting him out at a time when the market was going against him.

Mr. Gann adds:

PLACE A STOP LOSS ORDER AT THE TIME YOU MAKE A TRADE AND DO NOT CANCEL IT.

(Gann, W. D., 45 Years in Wall Street, Lambert-Gann Publishing Co., Pomeroy, WA, 1949, pp. 18-19.)

It should be noted that Mr. Gann advised traders to "place" the stop-loss order, in other words to give the order to their broker. Some traders say that they do not need to do this as they use mental stop-loss orders.

There are two real problems with the use of mental stops. The first is that it leads to a delay in the execution of the order. An order placed with a broker can be executed the moment the market has traded at the nominated price. Even if a trader is aware of a stop price being hit, he or she has to contact the broker before the order can be executed.

The second problem with the use of mental stops is the fact that it gives the trader the opportunity to second-guess his or her trading plan. It is very tempting to rationalize that "my stop may have been hit, but it has been a good trade so I will wait just one more day". Many a trader or investor has waited "just one more day", day after day, until a profit has become a loss.

One of the most effective pieces of advice I give traders who are having trouble with discipline is to tell them to always place a stop-loss order with their broker. The temptation to override it is then out of their hands.

Rule 3 Never overtrade. This would be violating your capital rule.
There are two forms of overtrading. The first is when Rule 1 is violated that is, when more than 10 per cent of your trading capital is placed at risk in the market.

The second form of overtrading involves taking too many trades in a relatively short period of time. This form of overtrading can:

Expose too much of one's account to the market;
Result in excessive transaction costs;
Result in the stress associated with making numerous decisions under pressure;
Lead to excessive work for a reduced reward.
Rule 4 “ Never let a profit run into a loss. After you once have a profit of 3 points or more, raise your stop loss order so that you will have no loss of capital.
Most experienced traders or investors have suffered the disbelief involved in realizing that they have let a profit run into a loss. As Mr. Gann states:

It is just as important to protect your profits as it is to protect your capital. Once you have a profit on a trade, you should never let it run into a loss. There are exceptions to this rule, and the amount of the profits should determine where stop loss orders should be placed. The following is about the safest rule that I can give you to use under average conditions. When a stock has moved 3 points in your favor, place a stop loss order where you will be even if it is caught. In very active high-priced stocks, it will even pay you to wait until the stock shows a profit of 4 to 5 points; then move your stop loss order up to where you will have no loss should the market reverse. In this way, you will have reduced your risk to a minimum and the possibility of profits will be unlimited. As the stock moves in your favour, continue to follow up with a stop loss order, thus protecting and increasing your profits.

(Gann, W. D., 45 Years in Wall Street, Lambert-Gann Publishing Co., Pomeroy, WA, 1949, p. 19.)

Clearly, some common sense needs to be used when applying this rule. Active, higher-priced stocks need to be given more room to move than less volatile, lower-priced stocks.

Rule 5 “ Do not buck the trend. Never buy or sell if you are not sure of the trend according to your charts.
One of Wall Streets most famous sayings is "the trend is your friend". The trend is certainly your friend and trading with the trend is clearly a profitable way to trade. The key is therefore to have a definition of trend and to apply it consistently.

Mr. Gann defined an up trend as a market making higher swing tops and higher swing bottoms on a swing chart. Similarly, he defined a downtrend as a market making lower swing tops and lower swing bottoms.

Rule 6 “ When in doubt, get out, and don't get in when in doubt.
Professional traders trade when their proven system gives them a clear buy or sell signal. In other words, they trade when the odds are stacked in their favour.

Just as it makes sense to trade only when a clear signal has been given, it also makes sense to get out when in doubt. A trend cannot be progressing well if there is real doubt.

Rule 7 “ Trade only in active stocks. Keep out of slow, dead ones.
If there is a secret to making quick trading profits, the secret is to trade strongly trending markets. Active stocks are also usually more liquid, reducing slippage and making the process of entering and exiting trades easier.

Rule 8“ Equal distribution of risk. Trade only 4 or 5 stocks, if possible. Avoid tying up all of your capital in any one stock.
Mr. Ganns Rule 8 raises the important issue of diversification. There is an old Wall Street saying which says "dont put all of your eggs in the one basket", which Mr. Gann clearly agrees with.

On the other hand, there are many traders and investors who take this to the extreme and who accumulate 30 or more stocks. Such a large number of stocks can also be hazardous to the wealth creation process, as diversification over such a large number of stocks will make it impossible to focus on the strongest stocks, thus diluting the proportion of very strong stocks in the portfolio.

W.D. Gann advocated limited diversification in an interview:

I could go over the history of Scales, Livermore, Durant, Ryan and the balance of the great men of Wall Street, and in analyzing their trading, the one weak point would be found in all of them, they diversified too much. Did not speculate in one commodity or a few special stocks, but spread all over the board. The result was that they had too many irons in the fire and when one thing started to go wrong and begin to lose money, they would invariably get out of stocks and commodities in which they were making money and keep those that were going against them.

He also stated:

Tape reading requires patience, and the essence and value of it is concentration. There is no such thing as a man being born with a mind that can concentrate on 10 things at one time, much less 700. Then success depends upon selecting a few stocks and concentrating upon them.

(Gann, W.D., Truth of the Stock Tape, Lambert-Gann Publishing, Pomeroy, 1923, page 4.)

Warren Buffett also cautions traders against over-diversification:

Buffett - describes traditional diversification as the "Noahs Ark approach"â€¦ Buy two of everything in sight and end up with a zoo instead of a portfolio. .

(Train, J., The Money Masters, Publisher unknown, 1994, page 2.)

After many years of wrestling with the issue of the optimal number of stocks to own, the author has concluded that Mr. Ganns suggestion of four or five stocks is very sound. Owning more stocks is permissible, but returns will be lowered towards that of the index as the number increases.

Rule 9“ Never limit your orders or fix a buying or selling price. Trade at the market.
Too many traders have missed excellent trades in strongly trending stocks, or have bought or sold at ridiculous prices, because they were inflexible about their buying or selling price. Strongly trending stocks, by definition, are moving quickly. Therefore, to limit a buying or selling price in such stocks can mean accepting a very poor trade entry or exit price after one has had to ˜chase the market.

This rule applies more and more as the average length of ones trade increases. Limits can be of useful to very short-term traders, particularly those who exit their trades when targets are hit.

W. D. Gann illustrates this rule when selling, in the following statement:

There is another type of investor who always gets out of the market too late, because when the big advance comes, he holds on and hopes that the stock will go higher than it ever does. It never reaches the price at which he wishes to sell. The first quick break comes, and he decides that if the stock advances again to its former high level, he will sell out. The stock does advance but fails to get as high, then declines still lower, and he again fixes a price in his mind at which he will sell, but this is only a "hope" price, and he sees the stock drift lower and lower until finally, in disgust, he sells out after the stock has had a big decline from the top.

(Gann, W.D., 45 Years in Wall Street, Lambert-Gann Publishing, Pomeroy, 1949, pages 20-21.)

Mr. Gann used to describe this first lower top as the safest place to sell.. (Similarly, Mr Gann describes the first higher bottom as the safest place to buy.)

Rule 10“ Dont close your trades without a good reason. Follow up with a stop loss order to protect your profits.
The best trader in a group will always be the trader who is the most skilled at exiting his or her trades. Amateur traders tend to let their losses run and cut their profits short. Clearly this is the opposite of what they should be doing.

It is the trades where we let our profits run which gives us our biggest profits. If one only trades in strongly trending markets, the traders aim should be to look for reasons to stay in the trade for as long as it continues to trend strongly. Sadly, too many traders search for, and inevitably find, many reasons why a market will stop at a particular price or on a particular day. They then over-tighten their stops or exit at these points, only to see the market power on to much greater heights.

Rule 11“ Accumulate a surplus. After you have made a series of successful trades, put some money into surplus account to be used only in emergency or in times of panic.
Mr. Ganns Rule 11, instructing traders to accumulate a surplus, is one rarely followed by traders. Instead, they prefer to trade or spend this money.

In is often said that if you trade for long enough, everything will happen to you. Certainly, you will experience times when the markets go from the extremes of˜booms to the undervaluations of˜busts. You will also experience extremes in the volatility of some markets that can be caused by the extreme gluts and the extreme scarcity of some commodities.

It is at these times that extraordinary trading opportunities can occur. Those with surplus funds can capitalise on these opportunities. Those with no funds, or funds tied up elsewhere, often spend the rest of their lives talking about the great trade that "could have been".

Â

Rule 12“ Never buy just to get a dividend.
Buying a stock to collect a soon-to-be-paid dividend can be very tempting. At first glance it seems a way to generate a quick, sure, profit. Of course, you are not the only person to realise that this opportunity exists, and so the price of the stock will tend to rise in anticipation of the payment of the dividend and fall by the amount of the dividend when the stock goes ex. dividend, thus negating any advantages.

Some people buy a stock purely because it pays a good, regular dividend. These people are investors, not traders.

Mr. Ganns advice is applicable to investors as well as traders. The fact that a stock pays a good, regular dividend is not a good enough reason, alone, to purchase the stock. The stock company could be about to reduce the size of the dividend or eliminate the dividend entirely. Stocks should only be purchased which Only stocks that are strong from a technical perspective should be purchased.

W. D. Ganns twenty-four never-failing rules represent the core of his massive contribution to the accumulated knowledge of trading and investing. In this article, Part Three of the series, Rules 13 to 15 will be discussed:

Rule 13 Never average a loss. This is one of the worst mistakes a trader can make.

Professional traders and investors have a clearly defined point of no return. When they place a trade or make an investment, they also place a stop-loss order that automatically removes them from the market when their reasons for taking the trade fail to materialise. This limits their loss and preserves their capital.

People who average a loss choose to buy more and more stock as the price of the stock falls. Their reason for doing this is that each time they purchase more stock at a lower price, they lower their average purchase price over the total amount of stock purchased. For example, a trader purchased shares as follows (ignoring transaction costs):

Initial purchase 1000 shares @ $6.00 per share. Total cost of first purchase is $6000.00.

The share price falls to $3.00. The trader averages their loss by purchasing another 1000 shares.

Second purchase 1000 shares @ $3.00 per share. Total cost of second purchase is $3000.00.

Overall, 2000 shares have been purchased for $9000.00, or for an average price of $4.50. This is considerably less than the initial purchase price of $6.00 per share.

For some, averaging a loss has great appeal. In theory, it allows these people to be wrong about a stocks immediate prospects and yet allows them to progressively lower the average purchase price per share, in readiness for its recovery.

In reality, what they are doing is making a trade or investment, realising that the trade was going to fail, and instead of immediately taking a small loss using a predetermined rule, they choose to throw more and more good money after bad. Sometimes, they will eventually make a profit from the trade often many years later. Of course, there can be a large opportunity cost associated with tying up trading or investment capital for such a long period when the money, minus a small loss, could have been reinvested in another strong stock.

Sometimes the stock never recovers. The trader or investor then loses all of their capital. The final, very low average price becomes meaningless as the stock is worthless.

Jesse Livermore was one of the greatest traders of all time. He said the following about holding and hoping and taking losses in his book,˜How to Trade in Stocks, (original publisher unknown, copyrighted in 1940):

On the best trades:

Experience has proved to me that real money made in speculating has been in commitments in a stock or commodity showing a profit right from the start. (Page 19)

On taking losses:

Profits always take care of themselves but losses never do. The speculator has to insure himself against considerable losses by taking their first small loss. (Page 21)

On holding and hoping:

If my stock does not act as I anticipated, I immediately determine that the time is not yet ripe - so I close out my commitment. (Page 22)

On so-called 'blue chips' (Livermore was pointing out the danger in the commonly held market belief, at the time he wrote the book, that it was safer to invest in railroad stocks than to have the money in the bank):

New York, New Haven and Hartford Railroad

Price on April 28, 1902 - $255. Price in January 2, 1940 - $0.50.

Chicago, Milwaukee & St. Paul Railroad

Price in December 1906 - $199.62. Price January 5, 1940 - $0.25.

Chicago Northwestern

Price in January 1906 - $240. Price January 2, 1940 - $0.31.

Great Northern Railway

Price in February 9, 1906 - $348. Price on January 2, 1940 - $26.63.

(Page 24)

On 'buy and hold' investing:

Speculators in stock markets have lost money. But I believe that it is a safe statement that the money lost by speculators alone is small compared with the gigantic sums lost by so-called investors who have let their investments ride. (Page 25)

From my point of view, the investors are the big gamblers. They make a bet, stay with it, and if all goes wrong, they lose it all. (Page 25)

A modern cousin of averaging a loss is a process known as dollar cost averaging. Dollar cost averaging involves purchasing a fixed value of stock at regular intervals.

For example, a trader or investor may choose to purchase $5000 worth of a particular stock every three months. With dollar cost averaging, as the price of the stock rises and falls over time, your $5000 purchases a smaller number of shares when they are trading at higher prices, while purchasing a larger number of shares when they are trading at lower prices. This process allows you to average a lower price than you would have if you had purchased all of your shares near the top of the market.

Again, dollar cost averaging has the same fatal flaw as averaging a loss if the stock price goes to zero; the entire stock holding becomes worthless.

Rule 14 Never get out of the market just because you have lost patience or get into the market because you are anxious from waiting.

Good traders and investors have learned to be patient. Amateurs love˜action. However, prematurely exiting a trade often prevents the big profits from being accumulated and prematurely entering a trade is to take a trade that has not given a clear entry signal. Professional traders wait patiently for an exit or entry signal, or they do nothing.

Rule 15 Avoid taking small profits and big losses.

As mentioned earlier, traders should be looking to cut their losses short and to let their profits run. Sadly, many traders end up doing the exact opposite. They take small profits, as they fear that the profit will become a loss if they do not take it. They accumulate big losses because they do not want to admit to themselves that the trade had failed. Ego and trading do not mix very well at all!

ule 16“ Never cancel a stop loss order after you have placed it at the time you made a trade.

W. D. Ganns extensive experience as a trader is obvious when we examine the wisdom of this short rule. In this rule he instructs us to:

Place a stop-loss order at the time the trade is placed.
Place the stop-loss order with a broker. It should not be aœmentalâ€ stop.
Never cancel a stop-loss order.
Good trading rules, such as those devised by Mr. Gann more than 50 years ago, take into account the all-important psychological aspects of trading. Placing a stop-loss order with a broker, as opposed to having aœmental stopâ€, is a good example of this. Not only does the broker execute the order the moment the market trades at the nominated price, but it also eliminates the possibility of the trader saying those fateful wordsœIll just give the trade one more day to come goodâ€.

Rule 17“ Avoid getting in and out of the market too often.

Many amateurs trade for excitement. Professionals, on the other hand, trade with the objective of implementing their proven system to the letter“ and enjoying the resulting profits. Entering and exiting the market too often makes trading more exciting for amateurs, but the professionals soon learn to take transaction costs into account.

When traders open a trade, they commit themselves to oneœround tripâ€ of transaction costs. These costs are a real cost of trading and can make a significant difference to the profitability of different trading systems. A system with an average trade length of three days will have transaction costs which could be up to twenty times higher, in total, than one with an average trade length of three months.

Medium-term stock market trading systems are generally more profitable than short-term systems due to the lower transaction costs. They are also less stressful to trade, require less work, and allow traders to make their trading decisions in the calm after the market has closed.

Rule 18“ Be just as willing to sell short as you are to buy. Let your object be to keep with the trend and make money.

Short selling is foreign to many traders.Â Few beginners can understand how one can make money in a falling market, and indeed very few people engage in short selling.

Short selling is unpopular for a number of reasons.Â These include:

Most traders are conditioned to, and experienced in, trading stocks in a rising market.
Short selling appears to be unethical, as uninformed people believe that in the stock market, it is the trading equivalent of stealing.
The short selling of stocks did, in fact, become illegal in Australia in 1980.Â It was reintroduced in the mid-1980s, but with conditions attached.

Professional traders, particularly in the United States, have made considerable sums of money trading the short side of the market, despite the fact that the average American investor also has a clear preference to only trade the long side.

Short selling is a practice that is good for all markets, as it helps to prevent extremes in price movements.Â If a short seller believes a market is at a top, regardless of whether he or she is correct, and the person sells stocks short, this adds selling pressure to the market, taking some of the˜heat out of the buying frenzy.Â Similarly, the short seller must buy the stocks back at some point, thus applying buying pressure that will help to prevent excessively low prices.Â Also, the short seller contributes badly needed liquidity in a bear market.

Traders who are experienced in trading on the long side and who have an adequate amount of trading capital are in the best position to undertake short selling. It is also best undertaken in a sustained bear market.

Rule 19“ Never buy just because the price of a stock is low or sell short just because the price is high.

One of the most common mistakes made by amateurs is to buy a stock simply because the price of the stock is low. This can be a very expensive mistake, indeed.

There are many reasons why a stocks price could be low. These include:

The market is a sustained bear market and the prices of the majority of stocks are falling.
The stock has experienced a normal correction.
A negative rumour concerning the stock has been circulated.
One or more of the large funds is unloading the stock.
The company is in severe financial trouble and may not survive.
Clearly, it is dangerous to buy a stock purely because its price is low“ particularly if we do not know why it is low. Even if we do know the real reason that the stocks price is low, the stocks price could soon be much lower if the trend is down. Indeed, a stock with a low price could still be an excellent candidate to short sell!

As Edwin Lefevre stated in Reminiscences of a Stock Operator:

â€œâ€¦stocks are never too high to buy or too low to sell.Â The price, per se, has nothing to do with establishing my line of least resistance.â€

(Lefevre, E., Reminiscences of a Stock Operator, Traders Press, Inc., Greenville, S.C., page 122.)

Rule 20“ Be careful about pyramiding at the wrong time. Wait until the stock is very active and has crossed Resistance Levels before buying more and until it has broken out of the zone of distribution before selling more.

Rule 21“ Select the stocks with small volume of shares outstanding to pyramid on the buying side and the ones with the larger volume of stock outstanding to sell short.

Mr. Gann is reminding us that a given buying force will move the price of a stock more if that stock does not have an excessive number of shares outstanding. He is also advising us to only short sell highly liquid stocks, as liquidity will be needed to ensure we can cover our shorts with ease.

Rule 22“ Never hedge. If you are long of one stock and it starts to go down, do not sell another stock short to hedge it. Get out of the market; take your loss and wait for another opportunity.

Hedging a stock in order to avoid taking a loss is much like failing to exit the market when a stop has been hit, or averaging down. In both cases, the trader is not willing to face the fact that the trade has failed. As Mr. Gann advises, it is best to exit the market with a small loss and to prepare for the next trading opportunity.

Rule 23“ Never change your position in the market without a good reason. When you make a trade, let it be for some good reason or according to some definite plan; then do not get out without a definite indication of a change in trend.

Consistently profitable traders plan their trade and trade their plan. To deviate from a proven plan is to not have a plan.

A good trading plan incorporates strategies that allow a trader to trade with the trend and to have a positive expectation of success. It should also give the trader an exit signal when the market has negated the reason for being in the trade“ usually when the trend has changed direction.

Rule 24“ Avoid increasing your trading after a long period of success or a period of profitable trades.

Mr. Gann was not only a great trader and analyst“ he also had a well-above-average understanding of human nature. He understood only too well that human beings, after a particularly profitable period in the market, feel compelled to increase their trading by a large amount. They mentally project their trading profits and realise how much they would have made if they had been trading with the larger stake throughout that period.

W. D. Gann understood that above average success in the market is usually associated with a strongly trending market. He also understood that when the market stopped trending strongly, sideways or choppy market action was a possibility. Such action is more difficult to trade and would be a particularly poor time to increase the size or frequency of ones trading

Note: rather than copy and scan my notes from Ganns books I have pinched this fine work from http://paisapower.blogspot.com/2008/01/w-d-gann-s-24-rules.html so please give him/her all the credit here

DJIA History

2011-08-07T09:29:00.001+10:00

and one for the bulls

Weekend Thoughts

2011-07-30T18:00:00.000+10:00

Last week when I looked at the XJO, I didn't really have a clue if it would go up or down( i did favor more upside to the level shown), but the risk to the upside was defined. Here's the chart with the likely lower targets being hit and not one moment of time by me spent wondering what impact the US Debt crisis would have on the chart in terms of targets etc.

Here's the EMA gate system and let you chose the trend

Price Patterns anyone ?

Might roll a few more thoughts in here over the weekend if they come to pass

Regards
Rob

SP 52 Square

2011-07-29T18:04:00.002+10:00

Next time some may chose there words wisely as I was prepared to go public with this all of week till those comments after posting the previous charts

A week on and thought I might re visit that 52 Square and show why they mean a fair bit to me, some say too many lines, weird where it fell too :))

I had to use the SPY (sp500etf) as the SP500 chart not updated yet, and a little simpler re the lines

US Banks in focus

2011-07-24T09:44:00.000+10:00

I like looking at the US Banking Sector from time to time and it helped sniff out last weeks move as the US banks started reporting, none more evident then the sharp move in Morgan Stanley. While many would say wow 15%mm but then zooming out on the chart what do you see ???

The biggest glaring problem I see with US markets at present and probably no surprise, but look how far apart the SP500 and the XLF are at present, does that suggest its time they got back together, Im open to either bridging the gap, and the bias is up to the individual

Regards
Rob

Get out of the Pig Pen

2011-07-19T16:55:00.002+10:00

No one likes being the piggy in the middle, however I find with trading so many of us have to go through that stage before we get a good grip of the markets, hopefully this will shorten the life span that some spend there.

For me its check the wider time frame's first and then zoom in from there using the clear Support and Resistance Lines

Regards
Rob

Firstly lets look at the wider picture, where the move down to last nights low was 50% of the first range down from the July Highs and with the 4 hourly showing the low as the risk, and the stochastic's wanting to rise, its worth looking for that bounce trade or even a longer term long.

On this chart the hourly I have identified the clear supports and resistance levels and where a safe place is to go short and long without minimal risk

From there I have zoomed in on today's action to highlight how the best trades are always from the SnR and why its better to place the orders with defined risk and let the market decide

Couple of Charts

2011-07-11T09:14:00.001+10:00

Market Outlook 03072011

2011-07-03T10:55:00.000+10:00

A quick zip around the world tells me the fur is burnt LOL

2011-07-03T09:50:00.000+10:00

Hers a quick snipit of what happened in 1987, so after reading notes from others recently and my own thought that an impulse to 5400 is possible, it clearly suggests so when you look at the 87 price history

Couple of mid week charts

2011-06-23T07:12:00.000+10:00

Few Charts

2011-06-19T12:45:00.000+10:00

Individual stock charts I own or watch with mid to longer term views as well as some scalpers for quick P

Regards
Rob

Swing Daily Weekly

2011-06-19T09:18:00.000+10:00

Just flick through the weekly daily and swig charts and you can, while respecting both the bearish and poor sentiment, see signs the bull wants to burn a few shorts at worst

I noted on the chart, and have spoken about it for some time, but look how well those money spending yanks have built support on support while frittering money into there own economy.

Economies and Markets are worlds apart and always will be ??

Been very lazy on the video front of late, so much footy on though sorry :))

Regards
Rob

Banks

2011-06-15T08:42:00.000+10:00

Looking Longer Term and knowing the risk

Price Pattern will repeat just a case of when

Swing SPI update

2011-06-14T12:55:00.000+10:00

Swing chart I tried to twit prior to our open this morning showing expanding up range and contracting down range and also a higher swing top, which should now show todays higher swing low as well, early days but worth watching and adjusting risk accordingly.
Heaps of data to follow all week so overall trend should be respected IMO

Probably highlights make or break time here as well, stochastics look good

CBA

2011-06-05T09:29:00.000+10:00

Update as the 144 count shows up and the square break down ??

My Majors List

2011-06-01T12:55:00.000+10:00

Heres my list of majors with a few notes on them

ANZ

2011-05-31T09:54:00.000+10:00

Couple longer term of mine

Swing Update 29 May 2011

2011-05-29T10:47:00.000+10:00

Quick look at swings

AUD looks to have trend changed ?

DAX a higher swing there and maybe look for a higher swing bottom

DJIA has a contracting down range and hinting at short term trend reversal

FTSE bit of a mixed bag at present

HK mixed bag also however last up range is expanding better to be patient

NK same as HK

SP smaller down range there and looking to temp for another break up

DX was treending up nicely and then OOOOOOPS

XJO we are clearly trending down still but could change early next week ??

Weekend Charts 29052011

2011-05-29T09:04:00.000+10:00

Getting close to another month down and more so for index and major shares, its time to prepare and get ready for the monthly ranges again. Amidst the sell off its uncanny that all index last week hit either there 75% or 100% range targets for the month and in knowing that, you take the foot of the short peddle and sniff out some longs knowing your risk is limited, presto the week closed with 3 greens ??

Anyway here are a few requests from the week

Weekend Charts 21May 2011

2011-05-21T12:51:00.001+10:00

Couple videos from requests and charts so far this week

Charts for Week 3 May 14 May 2011

2011-05-21T12:45:00.000+10:00

I had trouble with 1 video last week so here are all the charts and videos are at

http://www.youtube.com/user/TradeTheTrade?feature=mhee

USD Building the Chart

2011-05-21T10:39:00.002+10:00

If you believe the end of the USD is near, then maybe zooming out you will see its just repeating patterns as usual ??

The only thing that changes in a market is the people that are reading it, trust the patterns I say

And the SP500 overlay at the bottom

Enjoy

Regards
Rob

Swing Chart Update 21 May 2011

2011-05-21T10:08:00.000+10:00

Many times pople/commentators try telling us all the reasons for markets doing what they do, I try and just use a simple indicator and thats the USD. Some weeks back the trend was changing there after a few failed attempts. I guess we had to have crazy moves in Silver and Gold and our AUD to set it all up.

When you can convince me that the USD is not in charge of the current markets I will change to a new basic indicator :)

Remember all the comments and reasoning for Oil going to 200 etc etc in 2008 , looks pretty similar to recent commentary on Gold and Silver ??

At some stage in the future the USD and US equities will run together and current attention to this indicator for the last 3 years will change, but not just yet.

Few comments where required but the trend is down and only a few minor clues to a trend reversal here, best way to attack a long move is with a higher swing bottom, and currently I dont see too many ??

Regards
Rob

SPI Update 15 May 2011

2011-05-15T14:31:00.000+10:00

Its a lower double top until proven otherwise and thats how we work out risk ?

458 date due this week, not sure whether it produces anything but if it comes in as a low then the stats are hard to deny as per tweet

458 Zoomed out you can see how important current price action is

Fibs are showing we are at the 61.8% level currently and or the trend line underneath

The 2 x 1 line has supported price since the 2010 lows so if it goes then blue circle ?? otherwise the square for me

Monthly range

Swing chart says trend is still down

Good week for turns ?

Mmmmm looks crook ??

May Ranges Update 2011

2011-05-14T16:08:00.000+10:00

FINALLY got the blog working, didnt know what was wrong with it but annoyed as I had the ranges ready last weekend ready to load and nothing :(

How Structure builds history ?

2011-05-08T14:25:00.000+10:00

I have left the charts large as it should give a better effect then opening each slide

Enjoy

Regards
Rob

Swing Update 8 May 2011

2011-05-08T10:39:00.000+10:00

Added the AUD and DX this week to the ongoing list

AUD

Looks unlikely to continue trend IMO

DAX

Been the tricky one with swings but perfect off reistance and supports and ranges

DJIA

OK so a potential lower swing top however the trend is still ??

FTSE

given the large down range here I will be looking for some sort of low risk short if it presents

HK

Been the leading indicator and a great early alert to the caution which was required and anticipation leading to commodity shorts

NK

Noted this one awhile back and has not missed a beat since, caution here but the tredn is ??

SP500

Looks really solid to me if you avoid all the hype, however the is a potential lower swing here which merely offers a low risk trade if it becomes one

USD

The old ping from ALMOST lower swing bottom, push it through the stops and ping it up ??

XJO

Swings look crook although does it go to 4850 for another lower swing or break the mould

Regards
Rob

Weekend Charting 7 May 2011

2011-05-07T11:02:00.000+10:00

Charts to go with video thoughts

Videos

Charts

ARU

ARU

AWC

BAU

CEO

GTE

LAT

LYC

NAB

NCM

PDN

PRR

RDS

RWD

SDL

VBA

WLF

WPG

DYOR

Regards
Rob

SPI Update 7th May 2011

2011-05-07T09:26:00.000+10:00

Couple ranges worthy of noting currently, another earthquake might rock markets again if not a sly move into mid may ?

Make or break out of this sideways action will eventually coming

Swing says the daily trend is down

Couple of longer term zoom out targets

458 view

And zooming in for th mid may

50% still there ?

Retail

2011-05-06T20:17:00.000+10:00

No real opinion but probably not a sector I'm that keen to invest in either LOL, and I did look for positives they just don't stand out do they ?

DJS

HVN

JBH

MYR

TRS

Swing Update 1 May 2011

2011-05-01T08:47:00.000+10:00

DAX
I think it explains itself :)

DJIA
an abnormally high swing up range so look for a retrace to produce a higher swing bottom

FTSE
Was looking for the higher swing and it came and does look solid now, after spending much on monthly ranges in doldrum, was it setting up for a strong May ??

HK
Mentioned buying the break however also highlighted how risky it might be and by the chart you can decide :)

NK
The squeezer had to pop, and on a normal chart the gap is worth watching still

SP
Like the djia, watch for the higher swing bottom after that big break up

XJO
Right now we have a potential higher swing bottom forming, however I prefer not to trade against that lower swing top

Monthly Ranges - April in Review

2011-05-01T08:33:00.002+10:00

Another month down and despite the early month indications of a short, markets staged a good turn around, even if it was just from the USD demise

AUD
nice completion to 100% however just missing the 127%

Copper
For a market indicator you have to agree it was pretty sideways after initial early month movements

DAX
100% completion

DJIA
The surge in the last week propelled it straight to the 127% after failing at the 50% short earlier in the month

USD
Mid month commentary here suggested once it leaves the 50% look for sharp move which came to the 100% short side

FTSE
Could even give a 50% so wasnt the ftse's month, now that might suggest watching it next month ??

GOLD
Great month after under performing silver for most of it although still lagged it

HK
Stayed within the 50% for the entire month and looking weak now IMO

OIL
Another one with a messy monthly direction

SILVER
A whopping 400% completion :)

SP500
A little more subdued than the djia, but completed to the 75%

SPI
Another with a messy month although still producing the 50% a few times

XJO
Like the SPI ??

VLA and PRR update

2011-04-30T09:50:00.000+10:00

Enclosing a couple of charts for a friend here for ease of access

PRR

As you can see PRR has compleed its range both to the diagonal trend line and then range completion, therefore I think consolidation at these levels will be good and possible higher support now at 27 as well moving up from the previous 20

VLA Monthly

When zooming out to the monthly you can noticed the potential in terms of what it can rise just to return to previous highs, IE utilizing existing ranges.

VLA Weekly

Looking at the weekly and zooming in a little we notice that the trend line is hinting of a break up so watching for volume to support it. Notable ranges drawn and significant horizontal resistance shown

A Copy of email sent to Hot Copper Managing Director

2011-04-28T22:06:00.003+10:00

Dear

I am taking the opportunity to email you directly to clarify recent events which again led to another suspension by moderators. I would also like to state that a copy of this email (minus your personal details afforded to me in confidentiality) will be posted on my blog in order for those wanting an explanation from me to be able to see it, given I am unable to respond to comments made by P#### and D####, along with a couple unfound remarks by 2 posters who have no idea of the history.

I have never stated or wish to be Hot Copper’s Number 1 poster, it happened I guess from the countless hours I spent sharing charts which ultimately led to the creation of a charts thread. My video’s and charts started in early 2009, when the world was falling apart and I did so to instil some basic trading mechanic’s which might help some get up off the canvas after horrible experiences in 2008. For me personally it was great to see that through some hard hours, it was attracting new and old charters to your forum and healthy discussion’s we’re had

With the popularity came my concern that it would be best that I didn’t add much to stock threads in case others used this in a ramping of their stocks.

So in summary here can I say, I toiled long and hard for your members and there has never been an ulterior motive as mentioned by Debono in recent days, mind you it wasn’t an accusation but by mentioning it planted the thought incorrectly in other posters mind set?

Do I expect a pat on the back for that? No absolutely not. However when raising some constructive criticism over last 6 months or so, I was shut down where by any suggestions would have helped you site immensely

Moderation

As you know, my concerns for moderation started some time ago when heavy ramping starting to creep back into your forum in 2010. I actually TOU some posts on day traders in late 2010 and to my dismay nothing happened. I then quickly produced a video (still on YouTube) to warn posters on the simple TA required and that the stock had just completed its biggest ranges, put simply posters were promoting it another 100% beyond where it was at, without no reason or substance. Later on I re read the the posts alluding to this stock, to note moderators at the time were holders and keen promoters. Of course they are human, but if in a position of moderation, does this not become a conflict of interest.

I then raised the issue of paid moderators and willingness to contribute to the costs, the response I understood and accepted which was HC could not afford it.

Another example of moderation was S##### assumptions on IGR one day when it was topping and the above suggest “bigger buyers were snapping it up “(you would need to read post for exact wording). Now TA had been given on the stock suggesting it was topping and other posters were made look small by the above, who I might add was a holder at the time, and earlier in the year had likened my yearly road maps to 50/50 toss the coin stuff. Ironically IGR fell dramatically from where the supposed big buyers were getting in. Clearly another poor case of conflict of interest.

D##### post one line links on gold and silver threads, yet when PJSimon did so awhile back he was bagged a few times and I know these posts were TOU, again nothing happened. Earlier this year I suggested D##### put his own insight into some of his links only to meet with moderation cold flick again.

So I come back a few days later only to see a timely post by p###### which read

My understanding is that other site you mention is good for brief fatuous

comments and those with ADHD whereas a forum like HC is good for those

With research or views to offer in a spirit of goodwill and sharing.

D####

Sorry but that was a bait and no one can deny that, and very immature to

involve ADHD sufferers

The comment below is taken out on context by D##### and was not a threat but a promise, by putting up a quality post on the XJO thread which seemed to be well liked by your members more so then a trivial immature slant at the millions of twitter users, ADHD sufferers and no doubt the bait to me

"@DHarry1 LMAO I’m free to post and think I will put up a whopper or 2, and flog all the blue star thumbs, that will piss them off :))"

I did also mention a few times in feedback that the hearts and thumbs were useless, now if my ego was so high, then why on earth would I suggest something like that. Another incorrect assumption!!

So your moderators use the power to act on Rob’s inability to take their slant on the chin, and then post following comments to me knowing that I couldn’t respond

I looked at p##### profile and noticed a moderator offender himself???

31/01/10 8:24:43 AM	Suspension	poyndexter	Status Updated - Temporarily Suspended	Public: Since when were you given the right to tell the mods when to respond and when not to respond. Take some time off to reflect on your response.
14/11/09 5:38:12 PM	Suspension	poyndexter	Status Updated - Temporarily Suspended	Public: Cheap shots at moderators are even more dangerous

21/08/10 5:57:09 AM	Suspension	debono	Status Updated - Temporarily Suspended	Public: High level profanity - 1st offence
30/06/10 7:51:25 PM	Suspension	debono	Status Updated - Temporarily Suspended	Public: Mod sass, and language! - Tweets

26/11/09 9:24:25 AM	Suspension	siameseparrot	Status Updated - Temporarily Suspended	Public: Pretty nasty flame. Public humiliation is not appropriate on HotCopper. Take some time off to reflect on that.
28/12/07 7:14:20 PM	Suspension	siameseparrot	Status Updated - Temporarily Suspended	Public: 2 days for continuing the thread following a warning

I do think your moderators do exceptional jobs in general, just poorly lacking in the ability to listen to constructive criticism even if it comes from rough and unpolished people who have embrace all levels of the internet. There concern that I was tarnishing the Hot Copper name is incorrect and to this day still sing the praises of the website, unfortunately I can never afford the same to your moderators, whom as people away from their blue stars Im sure would be nice people, and I wish them well in the endeavours.

It is a pointless exercise continuing as the ultimate decision it seems has been made by your moderators to suspend me, and therefore providing further evidence where constructive criticism could have benefit your site greatly needs not be mentioned.

I would like to take this opportunity to convey my thanks to you and Hot Copper for the wonderful time I had their building friendships, learning trading skills and discussing many aspects of investments with your members. I am better for the experience.

To all your Hot Copper Members, I would like to apologise to them for any undue attention this has caused having the recent issues sadly consuming some threads. I wish them all a safe and fruitful investing career. I was never a role model in terms of good manners and at times did act immaturely which I always am willing to admit to and do so when trades go against me. But I gave your site 100% commitment in the spirit of sharing market knowledge, for that I hold my head high and proud of my efforts.

The email is closure for me in which you have permission to share on your site to eliminate any further discussion about myself there and to allow Hot Copper to move past this issue as well

Kind Regards

Rob

(Robbbbbbb)

Market Report 26 April 2011

2011-04-26T10:32:00.000+10:00

Monthly Ranges Summary

SPI - initially failed at 50% long and then set up a move to 75% short, look to be stuck for remainder of month- 4953/5033 worth watching

XJO – range bound IMO, so watch for 4948/5028

AUD – Completed to 75% and the 100% is at 1084

DJIA – shaky mid month and off recent low looks has now completed 75% with 12618 the 100%

SP – broke the 50% long level Friday so will either hug it for remainder of month or watch 1354/1374

USD – completed to 7% short with 7337 the 100%, any up move this month would possibly stop at 7512

DAX - short failed at the 50% level and now looks set to complete to 75% level at 7384/7509

FTSE – strangely range bound to the 50% level on both shorts and longs

GOLD – Completed nicely into the 100% and 1525 being the 127%

COPPER – 2 x 75% completion short and long by mid month which offered great trading

SILVER - Largest extension of a range since Nasdaq did so March 2000

OIL- Completion to 75% early in month and since has retraced and coming up again

Market Wrap

458 SQ

Market still tracking and after a non event earlier Im looking to Mid May

COPPER

Clearly its a bull flag, but there is a huge resistance line above and also a lower swing top, consolidate or to the mid line

DAX

Last week the suggestion was to go long here ? Because if it gets through the highs then we all know the perfect ranger that the dax is ?

DJIA

Simple is good here and really when you look at the above and then see current reporting season, is it a no brainer ?

SPI

Weekly ema and stochastic’s are on the up, I guess the stand out here would be the 41 crossing above the 195ema ??

SPI

Daily ema looks great with gate system open to the long side and I guess confirmation would come if stochastic’s turn up even though its more favourable from the lower line

FTSE

Gee its been struggling of late, and thats got to be a concern and shows how much they have relied on emerging market trading. Needs some of there own money back in the market I say

GOLD

And there is the 1500 and the 200% fib projection, Is it parabolic NO I don’t think so. It will keep going until the USD bounces, look out when it does although safer here than silver ??

I drew this some weeks back and thought “NO” but buy it if it does ?? and it did J

NASDAQ

The lower double top still haunts it, but most always break eventually ?? If markets do come off, this is where I might focus with heavier shorts. Its all about Apple LOL

OIL

First stop was 100, and who says it can’t get to 120, sorry it hasn’t nothing to do with supply and demand

The weekly here looks to stand out somewhat to the north side and is the blue box by mid may possible ?

SPI

Kept the same channel again here, to show the longer term bullish move which appears in the Price up and since April 2010 the consolidation. Still think this is a mirror image of the 87 aftermath

XDJ

Looks a little like the HK chart and really if it gets going then the low risk is the long side IMO

XEJ

Gee we have had fun with some stocks in this sector over the last month or so, are we going to show support on the horizontal now before continuing in the trend channel ?

XFJ

Mentioned this one to watch if the market kicks on and given its that time of year for the banks ?? Wants to get above the 195ema doesn’t it ?

XGD

Had a great run, simple trend lines in place, if it fails to break the channel then mid line is possible

XHJ

Had some good focus here in recent times and price structure indicates why on a simple scale, if it breaks get on ??

XIJ

Little higher double bottom there, I don’t like how the stochastic’s seem to be rolling over, maybe that customary double dip then go ?

XJO

If we ignore the data prior to the 09 low, then I see this as a perfect Time and Price set up and you just simply add heavily at the break on good volume ?? Trouble is you can’t ignore the past LOL Horizontal’s look interesting

XMJ

The last spike here is all about BHP and I leave the thought to the individual, but put simply the best trade will be the IF it does go with J

XNJ

Bullish ??

XPJ

Stuck in the Mud LOL

Reminds me of places that don’t embrace change, face book did and look what happened ( PS i rarely use it )

XSJ

Wants to get going but still messy ?

XSO

Explains itself really and good gauge to a market retrace when they come around. Was the easiest way to see the March correction coming

XTJ

Watch it, traders especially

XUJ

Great little channel and recently off the support again

SWING Trading

Comments on charts

DAX

DJIA

FTSE

XJO