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Technically, price bumped its head against the 60-min 20-bar EMA, which earlier served as support. Maybe a lot of short term traders expected the LOD to be retested when that happened and all the longs headed for the exits, creating a self-fulfilling prophecy of the LOD being tested. Next...

My stop loss is .20 (or less if indicated), and I imagine if I were to have 3 losses in a row off valid setups, I'd stop and evaluate whether the market and I were in sync that day. I'm a price action trader so I only enter trades in the direction price is moving, making it difficult to have...

An excellent method of determining the price at which a trading instrument will become overbought/oversold is to link up with a counter-trend trader and ask the price at which they placed their drop-dead disaster stop. That's where price will reverse 95% of the time :D If you trade the ES...

This reminds me something I used to do frequently (very frustrating) and something I know many traders do. If you've taken back-to-back losses and you're currently in a winning trade, there's a strong temptation to take off the trade once the unrealized profits zero out the realized loss. Many...

Individual numbers are meaningless without context. Someone who consistently posts an average daily profit of $200 day and is posting day after day over time may be doing just as well as, or better than, someone who posts large gains very occasionally. If you're trading a $10K futures...

Outcomes may be highly likely in advance, but are never decided in advance, unless you believe every large trading desk (including random hedge funds) collude with each other as a team to push price in certain directions (though I'm not implying this is out of the question). Price lifted...

There's a very good reason for this; although it seems totally counter-intuitive, trading real money produces different results than "paper trading" results. I personally mentored some traders last year, providing them with a proven strategy that, in its purest "no-brainer" form, resulted in...

Ghost of Cutten, you seem very knowledgeable about these things and so I would like to ask you related question, something that's been gnawing at me for the better part of year, possibly longer: What does it mean when Goldman Sachs upgrades a stock from "Conviction Sell" to "Sell"? :D

Reminds me of when I was a total beginning trader and learned how to set up my direct access platform with scanners and streaming news. I'd watch the stocks that reported earnings and see if I could find some relationship between the reaction in after-hours trading and what price did during RTH...

For any hairbrained swingers who traded off my hairbrained analysis the other day: The first test is nearly "in play" :p

On a related note, ya ever notice how all the big swinging dicks boast about how much horsepower their rods got (while they wolf down their 24 oz porterhouse steaks), yet the first question I get when I tell people I'm a pure vegetarian is: "Where do you get your protein???" Uh, well, let's...

Hey, careful now, you're supposed to leave your ego at the door :p :p I am forever thankful for the incredibly valuable lessons you demonstrated for me with your live calls day after day. My CL success was enhanced enormously by what I learned from you regarding trend, relative strength and...

Today was all about the trend once the failed final flag was put in on a break to key level 102.12 that quickly found support. Once that occurred, I had some counter-trend shorts that were pretty much a struggle, but the longs had some serious tailwinds behind them. I had one losing long...

From a purely technical standpoint: Sell a break of 160.00

GEEZ!!!!!!!!!!!!! Is it really you? ******* Puddles, nice trading :) I especially like that AMT setup, one of my favorites. The "apparent" trend reversal sucked in shorts at the lower high, but is now retracing and has retraced more than 50% of the deep pullback. I call this setup...

I define a swing trade as one or more overnight holds to capture profit from an individual price swing (in this case tests of, and breaks of, previous daily lows 1274.75, 1261.50 and 1241.75). If I took a short at these levels, my initial 1301.00 stop would now be lowered to 1297.00 (just...

My hairbrained analysis: Price smack up against the falling 20-day EMA on the daily chart off a confirmed reversal pattern (lower highs and lower lows + trend line break). Previous support around 1298.00 appears to have become resistance. Technically speaking, this is an ideal anticipatory...

In response, I offer the Trend Followers' versions of these quotes, two concepts that hugely boosted the profitability of my day trading: "Be greedy when others are greedy and fearful when others are fearful". "Buying new highs when it seems price can't possibly go any higher is an...

Breaks out of flags, triangles and such tend to come out of low volume. Breaks of previous highs or lows in a trend tend to occur on strong volume.

Ideally, I like to be positioned in the direction of the trend from a pullback entry. An example from today would be a short position I put on @ 103.28 (break of the 11:25am ET bar low). Price had put in lower highs and lower lows, so I wanted to be positioned short for the next lower low. I...