Thursday, September 23, 2010

Trade Management:

So now we need a 3Range Bar close below 93 to create a red box, and indicate a possible trend change. One red box does not a trend-change make...it takes 3, so bounces and chop are possible in the first two red boxes. This is true for any time frame/range bar setting. No w since the current 3 RB projected low is not below 93, it can close low, and rise again into some chop The red MA is the 13, where you get a typical bounce into a lower high; since we've already had a lower high with the previous range bar, the 13 may not be supportive, and the blue 34 is the next stop. The fact that the lower high bar is red is a good sign, it is keyed to the MACD signal Line (hidden), which has turned south.

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