Another technique I use is to go with the crowd who are "directed" by CNBC.
I personally don't watch CNBC and the rest, but I know somewhere that does before the market even opens.........
"TASR +3% (continuation of 9.4% move yesterday; mentioned on CNBC)"
That alerted me to the expectation that there might be an early rush of buying from the CNBC watchers so I set up to watch the buying and selling pressures and again a no brainer as they all poured in - the moment the buying pressure was unequivocal I went long heavily knowing it had to run with the crowd. I had no idea where it would go, however. Sometimes these trades only give me 15c sometimes $1.50 - there are very many examples of similar trades I've done earlier on this thread.
Risk - absolutely minimal because this type of trade has a very high success rate. If it would have reversed on me straight away I'd have been out.
Maximum loss in the very unlikely scenario of an instant reversal - 3 to 5 cents.
Reward unknown, but with a very high hit rate, it actually doesn't matter what the r/r guess is; such "calculations" are meaningless.
Once the first hint of selling appeared I exited.
26 cents in as many seconds.
No chart because I wasn't even looking at one, just reading the tape - this type of trade is about reading sentiment as evidenced by buying and selling pressure and the trades actually printing off. No chart, no volume, just going with the crowd - jumping on when they start running and jumping off when they slow down.
I love crowds in the market - and never go against them
![Smile :) :)](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
For me being contrarian is not going against the masses, it's taking advantage of their fickle moods.
Happy New Year to all my friends on t2w
Richard