Pete's Place

After churning this morning, I got a hold of this short at 79.
My stop is right above the pivot right now (75). I plan to leave it there till the close or a clear indication that the decline is over, then I'll tighten it up.

Here's why: only twice before since Sept. have we opened in "A", hit R1, P, then S1. Both times we went on to hit S2 and close in Z, which would mean a close under 51 today.
 
You'll find that when price has a rapid move accompanied by strong volume, it tends to move sideways for a while when the move is exhausted. One reason for this is that high volume takes many if not most traders out of the market. Therefore, the hammer at support may or may not be a signal to buy, depending on one's assessment of the risk of a continuation to the downside.
 
You're welcome Bob, just remember, it's not a trading method... just something which I believe can be used to help out a trading method. ANYTHING CAN HAPPEN AT ANY TIME! The market is almost completely unpredictable.
 
One other thing you may want to consider is how your exit strategy affects your availability for a reversal. In other words, if you don't take your target, then you can't take advantage of a reversal, unless you get in very late. Unless, of course, you want to get into being both long and short at the same time.
 
Yes Peter I am aware of the unpredictable the markets are. It took awhile and a few large drawdowns before I learned no matter how good the setup may have looked the minute it breaks down or you have doubes get out or you will jooin the large list of ex-traders.
 
Quote from dbphoenix:

You may want to re-examine your target tactics, then. Perhaps over the weekend.
More...

I believe the particular tactic i'm using for this trade is called "going for broke".

Normally I would be long on the second failure to move lower, but I view today's action as a rare occurance, something's up, so i'm going for it.
 
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