Wednesday, June 27, 2007

Did you see that train coming......

Today was one of "those" days, the past couple of days we have been bouncing around daily support and resistance, floor name it....blah, blah and blah. Slow over lunch and chop chop has been trouble for a lot of traders. Get in a trade with a tight stop (10ticks or less) and before you could get to refrig and got stopped out.....of yea there was a couple of runs but did you get them or did you take your profits quickly before of the hammering you got in the slop and chop....this is why the idea of using symmetry is KING on a day like today.
The market had a mission today, and the first bar trade was voided when both the high and low of the first was taken out. By 10:30 we had our first pullback that defined symmetry and the rest was history.

I really get a kick out of the chat rooms...while I sit there listening, being a good little boy....I see traders doing those counter-trend trades only to get run in the chatroom they get out at BE....but by lunchtime they are quiet and not blowing off about their trades.

Traders also love to put more garbage on their charts then is actually needed.....With understanding symmetry, you know that .618 and 1.618 are considered the golden ratio. There has been a library of books written on the subject so I'm coming up with something new here. Symmetry is all throughout nature, science and so on and is one of those laws of nature in some aspect. If you multiply both golden ratios together (.618 x 1.618) guess what you get.......ONE.

Now today, there was also a two step or Gartley pattern and again a library of books have been written out that one also and how it traps traders on the wrong side of the market. But what if you also used an indicator that measured these pullbacks or symmetry......Today would have been perfect....since symmetry was pure bullish today and with a simple stoch......a great place to consider a new trade...or manage one you are did you do?????????

1 comment:

Anonymous said...

Nice post!