Iterative Refinement
- Thread starter Spydertrader
- Start date
Hey all,
I am looking for some input on the attached daily chart for DDS. I sold this short yesterday for four reasons.
1) It was in DU
2) It reached volume early, and was negative.
3) It is in a downward channel.
4) It had declining black volume the three days before (June 17th is properly colored black, I believe)
I held my position today, even though the stock was going positive on decent, though lower volume. There are 3 reasons I decided to do this.
1) It has broken through March's low price.
2) It is an inside bar. This is where I need help. Is this a flaw because it is inside the previous bar, the opposite color, and lower volume?
3) Though black, the volume is lower than the day before.
There is one reason I am uncomfortable with this decision. Namely the FTT last week. I see this as the March low giving resistance to the downward channel. It seems the channel has won out, but I would like to get some input on this. PLEASE tell me where I am mistaken and where I am doing alright in my Analysis. I need all the help I can get.
Thanks all!
JF
I am looking for some input on the attached daily chart for DDS. I sold this short yesterday for four reasons.
1) It was in DU
2) It reached volume early, and was negative.
3) It is in a downward channel.
4) It had declining black volume the three days before (June 17th is properly colored black, I believe)
I held my position today, even though the stock was going positive on decent, though lower volume. There are 3 reasons I decided to do this.
1) It has broken through March's low price.
2) It is an inside bar. This is where I need help. Is this a flaw because it is inside the previous bar, the opposite color, and lower volume?
3) Though black, the volume is lower than the day before.
There is one reason I am uncomfortable with this decision. Namely the FTT last week. I see this as the March low giving resistance to the downward channel. It seems the channel has won out, but I would like to get some input on this. PLEASE tell me where I am mistaken and where I am doing alright in my Analysis. I need all the help I can get.
Thanks all!
JF
Here's something that went wrong then right today.
Attached is the daily chart for WAB. I had this marked down for a possible short because of the decreasing black volume. I thought it was an FBO and might renter the downward channel. I must admit a macro bear bias was also weighing in here. The stock had good volume and was down early, so I shorted. Well... BIG MISTAKE. As soon as I saw the volume growing and the upward tape just getting stronger, I exited out. A few minutes later I entered long. I made back my losses and then some. : )
I have two questions:
1)I am trying to understand my mistake. I think it involves the fact that I did not see the last five bars as lateral motion until I looked at the chart tonight. The lateral had broken out of the channel, and the one attempt to reenter the channel two days ago had failed. Is this an accurate analysis?
2) I believe the stock has entered into extreme volume territory. Does this mean I should look to exit early tomorrow?
Thanks all!
JF
Attached is the daily chart for WAB. I had this marked down for a possible short because of the decreasing black volume. I thought it was an FBO and might renter the downward channel. I must admit a macro bear bias was also weighing in here. The stock had good volume and was down early, so I shorted. Well... BIG MISTAKE. As soon as I saw the volume growing and the upward tape just getting stronger, I exited out. A few minutes later I entered long. I made back my losses and then some. : )
I have two questions:
1)I am trying to understand my mistake. I think it involves the fact that I did not see the last five bars as lateral motion until I looked at the chart tonight. The lateral had broken out of the channel, and the one attempt to reenter the channel two days ago had failed. Is this an accurate analysis?
2) I believe the stock has entered into extreme volume territory. Does this mean I should look to exit early tomorrow?
Thanks all!
JF