YMU7 13 June 2007
Where to for the Dow today. I think the key 500 level will be an indicator of near term direction. Failure to break through that in early trading will be bearish for the rest of the day. A break of 300 is bearish for the longer term.
I'm watching my new charts, and looking to sell weakness on a test of 500. Failing that, I'm looking for a long on clear consolidation around lower levels around 400, with a confirmed upside break.
COMPX, INDU, and SPX are all up so far, but the 2:1 ratio is absent. Perhaps this will not be a trend day. Tick doesn't seem to notice a zero line and is comfortably straddling both sides.
I'm using new charts - hourlies, 15m, and the 5m. Not paying attention to shorter timeframes.
I'm trying to only trade on strong, high probability setups defined as entry near S/R zones on Tick divergence, respecting the 100 min EMA (buy above, sell below, unless there is good reason to do otherwise for example late entry).
Adapted chartman method calls for the EMA rule, I'm keeping RSI for confirmation, but my main focus is price and volume, informed by tick divergences.
Goals for Today
Losses not to exceed £30
No overtrading (defined as many small scalp trades - target of 3 trades)
No scalping
2:1 risk reward on all trades
Holding a trade until target is hit or an actual reversal materialises - no panic exits. A reversal is defined as the system giving a long (short) signal while I am short (long).
No "gamble entries" - a solid setup must be present.
