Why trading between ranges and TA is important. T
Post# of 56324
Posted On: 08/08/2014 12:25:45 PM
Why trading between ranges and TA is important.
Trading activity for the last 5 days (including today so far) shows MMs selling into retail buys. On 8/4 PPS hit .0584 high on a volume spike based primarily on anticipation due to onsite activity (FITX). A look at CMF(20) clearly shows selling rather than accumulation punctuated by three PPS spikes (one of which is occurring as I type this) to .0575. In the last three spikes RSI also peaked. You can literally watch L2 and know exactly when MMs will sell shares as these patterns emerge, and conversely, you use this same information to determine a confirmation. If you are accumulating or selling,knowing how to read a chart and use indicators including CMF, MACD, RSI and Volume allows you to then utilize GTC Limit Buy and/or GTC Limit Sell orders. In addition, drawing trendlines and setting support and resistance in combination with SMA indicators identifies trading ranges. The biggest mistake I see made is a lack of discipline to trade trends rather than emotions.
Trading activity for the last 5 days (including today so far) shows MMs selling into retail buys. On 8/4 PPS hit .0584 high on a volume spike based primarily on anticipation due to onsite activity (FITX). A look at CMF(20) clearly shows selling rather than accumulation punctuated by three PPS spikes (one of which is occurring as I type this) to .0575. In the last three spikes RSI also peaked. You can literally watch L2 and know exactly when MMs will sell shares as these patterns emerge, and conversely, you use this same information to determine a confirmation. If you are accumulating or selling,knowing how to read a chart and use indicators including CMF, MACD, RSI and Volume allows you to then utilize GTC Limit Buy and/or GTC Limit Sell orders. In addition, drawing trendlines and setting support and resistance in combination with SMA indicators identifies trading ranges. The biggest mistake I see made is a lack of discipline to trade trends rather than emotions.
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