Open Position 30/01/2014- Trade Closed
Duration: < 1 day
P/L: $1.5
Duration: < 1 day
P/L: $4
A simple CFT Views on Trade Strategies. If things can be simplfied and effective,why complicate it? Gaining an edge from historical chart movement... ~Caveat Emptor~
Counter: Wall Street Cash
Many of us are holding out for the stock market to crash further. However, how many of us are able to catch the shares we want right at the trough?
If index would to retrace to 1200, would you enter than? You might tell yourself than that 1000 is likely. Before you know it, you will probably be chasing shadow again.
If investment is your cup of tea especially with time frame set at 3-5years, One should seriously starts 'batch to batch buying' as and when market plunge.
Go for blue chips though. Companies (esp market leaders) that can survive this storm will return the fastest and strongest.
'Interesting' triangle developing in Dow Jones. When triangle formation emerge, its time to pay attention!!
Triangle is a result of converging trendlines of support and resistance. Usually, trading action gets tighter and tighter until the market breaks out with great force. Buyers and sellers find themselves in a period where they are not sure where the market is headed. Their uncertainty is marked by their actions of buying and selling sooner, making the range of the price movements increasingly tight.
Finally, when a consensus in the market is reached, this is reflected as the price breaks out of the triangle. A spike in volume on this breakout would reflects stronger consensus that the stock should move in that direction.
However, do note that this triangle formation was not accompanied by diminishing volume and hence might not result in classic triangle breakout kind of of price action. Potential false breakout remains a possibility. Traders should keep themselves abreast of updated macroeconomic condition in order to reinforce the reliability of any breakout in the near future.