Quote from jan168:
Apex82:
Could you elaborate a little more on the retest ?
e g .. the time frame that you look at â60 min/ day or week?
Is it qualified for retest if the market pull back for one day on the other hand on weekly chart market has not retested since July?
Thanks for insight.
Beginner
[/QUOTE
The term retest is a move off of a 9 ringed high or low and then retraces back up or down to that pivot at a later time and retreats off it within a 78.6 or 1.2764 expansion as minimun and maximum penetration. It can be used on any time frame, but the 5 minute is a favorite of mine for daytrading. Its much easier to see visually. An example, the spx came up to 1389.50 on the 26th, it then sold off for several days. Thorn made the top call on the 1st, after it had already sold off. The real way to trade a top like this is wait for it to come back up to a 78.6 retracement of that pivot or an exact retest to the point. Put your sell limit in and put a couple point stop and just hold for a homerun. Just be aware that if it was a significant pivot you know they are going to run those stops just above it before taking it down. So you could place one unit at the exact retest price and then another limit about 2 or so points higher. Put a total of a 4pt stop and let it run. You can see if you would have traded that 1390 pivot this way it would have worked out in a big way. You didnt get the homerun but you didnt lose a huge % either like most people the past few months trying to short this market. I hope this clears some confusion up for you.
S&P has topped for 2006
- Thread starter thorn
- Start date
Why are people angry if someones call is not spot on? haha, this is trading folks.
It is not just that after the factness "I BOT and SOLD here folks, that is picking a top and bottom!!" but how u are trading the idea, minimizing the damage when wrong, getting out when u can, adding when u can, staying aggressive. Sometimes, one gets hurt and is happy to get out minimizing the damage.
It is interesting to see people curse the stye, "picking tops and bottoms" well, what properties does one find if tests are done on the characteristic of the SP market? And the, minimize risk with that stop placement..." Ouch, I feel the pain in that statement, It hurts to me more than getting slammed -30 points in the SP.
Most traders I have known who know how to make real money also have been wailed on on more than a few occasions.. Traders without gamble in them bleed.
It is not just that after the factness "I BOT and SOLD here folks, that is picking a top and bottom!!" but how u are trading the idea, minimizing the damage when wrong, getting out when u can, adding when u can, staying aggressive. Sometimes, one gets hurt and is happy to get out minimizing the damage.
It is interesting to see people curse the stye, "picking tops and bottoms" well, what properties does one find if tests are done on the characteristic of the SP market? And the, minimize risk with that stop placement..." Ouch, I feel the pain in that statement, It hurts to me more than getting slammed -30 points in the SP.
Most traders I have known who know how to make real money also have been wailed on on more than a few occasions.. Traders without gamble in them bleed.
Quote from bsmeter2:
When is the next prediction coming out?
I bet thorn would be far more likely to share his valuable opinions with us, if not for all the bashers who persistently de-motivate talented traders from making public calls here.
)this is daily chart hmm...looks overextended if looked upon weekly chart....but anything can happen.
Plus I read this article in WSJ that there is alot of bears still in the markets. Hmmmm......Thats odd.
And by the bears, I mean institutions which are bearish on the markets since that bottom in the summer
Plus I read this article in WSJ that there is alot of bears still in the markets. Hmmmm......Thats odd.
And by the bears, I mean institutions which are bearish on the markets since that bottom in the summer
Exactly the point. The market has been grinding up steadily with mucho bearishness sentiment amongst real traders. There are lots of bears like thorn scratching their heads trying to figure out what to do next.
Guess what happens when these bears all start figuring out that they're missing the last major rally of their lifetimes?! yep, a massive parabolic blow off top!