I saw your posts at Bankrobber and wanted to offer something you know but might not have considered... 1. What were the indices doing at the same time? 2. What was the longer term trend? Prior day, multi-day? 3. The 7 EMA tends to act as a proxy for short-term S/R. You'll notice that at 10:40am, price broke and settled (closed) above this moving average. Though they are not necessarily the tools to use to make final decisions, the two EMA's are factors to be considered as part of an overall review prior to making a buy/sell choice. You'll also note that volume bumps up at the 10:40 candle, indicating that buyers were on board with the direction change. Go to a one-minute chart to review the 10:30 to 10:45 area more precisely. At 10:31 you will see a volume spike (more buying interest). There is foreshadowing here because price did not go down to the former low from ten minutes prior, it reversed. Sellers were finally exhausted. Quotetracker won't allow me to go back further than April 11th, but I'd bet there were important factors to consider in the prior day and perhaps before that in terms of trend. Remember to use your trendlines in addition to S/R lines, they are just as important, if not more so. Again, the 7 EMA is a great proxy for trendlines in strong momentum moves. But don't use it as a substitute in the beginning. Draw the lines faithfully until you can look at a chart and see them without drawing them. Your perspective will change after a while. Volume will begin to preach a message to you when you watch it in context with where price is in relation to trendlines, S/R, and other common indicators. It makes for a cluttered chart but then you will sort out what is important and not important, leading you to remove the indicators once you have established your edge. It's like when we I learned to write in elementary school. Teachers began by giving me paper with three lines (you might recall the two dark lines with the lighter dashed line in the middle). I knew then how tall to write the capital letters versus how tall to write the small letters. After mastering it, only the two lined paper was necessary. By the time I reached later elementary school grades, I only needed standard lined paper. Good luck.
I saw your posts at Bankrobber and wanted to offer something you know but might not have considered...
ReplyDelete1. What were the indices doing at the same time?
2. What was the longer term trend? Prior day, multi-day?
3. The 7 EMA tends to act as a proxy for short-term S/R. You'll notice that at 10:40am, price broke and settled (closed) above this moving average. Though they are not necessarily the tools to use to make final decisions, the two EMA's are factors to be considered as part of an overall review prior to making a buy/sell choice. You'll also note that volume bumps up at the 10:40 candle, indicating that buyers were on board with the direction change. Go to a one-minute chart to review the 10:30 to 10:45 area more precisely. At 10:31 you will see a volume spike (more buying interest). There is foreshadowing here because price did not go down to the former low from ten minutes prior, it reversed. Sellers were finally exhausted.
Quotetracker won't allow me to go back further than April 11th, but I'd bet there were important factors to consider in the prior day and perhaps before that in terms of trend. Remember to use your trendlines in addition to S/R lines, they are just as important, if not more so. Again, the 7 EMA is a great proxy for trendlines in strong momentum moves. But don't use it as a substitute in the beginning. Draw the lines faithfully until you can look at a chart and see them without drawing them. Your perspective will change after a while. Volume will begin to preach a message to you when you watch it in context with where price is in relation to trendlines, S/R, and other common indicators. It makes for a cluttered chart but then you will sort out what is important and not important, leading you to remove the indicators once you have established your edge. It's like when we I learned to write in elementary school. Teachers began by giving me paper with three lines (you might recall the two dark lines with the lighter dashed line in the middle). I knew then how tall to write the capital letters versus how tall to write the small letters. After mastering it, only the two lined paper was necessary. By the time I reached later elementary school grades, I only needed standard lined paper. Good luck.
I will post a BIDU chart for this timeframe at my blog today to illustrate what I am talking about. Maybe it will help, maybe not.
ReplyDeleteanything helps. even if you say i'm nutty, its alright. it is a learning process, lol.
ReplyDelete