TICK:
SDS:
I started marking these as if I took every indicated trade based solely on the TICK, just for kicks, to see where that might have led. The terribly obvious resistance at yesterday's high could not be ignored as any trades to the upside of this line were doomed, I know as I tried one or two and they went nowhere. So this puts a short bias on any trades and I only posted the lead up to the large drop in the S&P500, everything before that was just tight range trading. The price chart is for SDS, the leveraged bear ETF
Interestingly this could have been played without the TICK altogether due to the solid resistance by just entering short as close to this line as possible...or even a bit over. There are far more ways to determine trade entries...I just like the way the TICK shows me what is going on.
The green arrows are the first indication of the following move and the black are the triggers to make the trade. Given the expectation of the move either of those two trades would have stop loss orders below the black low for SDS from Tuesday (which corresponds to the SPX high). Moving the stop up following the 50sma or the purple 100VWMA ( I am starting to recognize it as a decent stop setting once a move is underway).
Should I have been stopped out on the 50sma after 1430h there was another nice setup after 1500h to get back in for more of the move.
Jeff.
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