I have often stated that consistent success lies in the ability to get in on a trend early, especially the AM trend. Often an absence of an AM trend may mean a potential PM trend if the day opened on a large gap but on many days its just a TR day (regardless of gap).
Occasionally, however, we get an excellent AM trend which breaks and instead of turning into a trading range, reverses into another excellent PM trend.
To anticipate such moves, watch for a large gap and an open within the range of the prior day (b1). If the trend move breaks an extreme of the prior day in three pushes (b5,10,18) and gives a reversal signal (b18), there is a very good chance the next two legged pullback (b45) will break into a trend. This trend should be expected to at least take out b1 and therefore is an excellent swing candidate.
No comments:
Post a Comment