- Forget the news, remember the chart. You’re not smart enough to know how news will affect price. The chart already knows the news is coming.
- Buy the first pullback from a new high. Sell the first pullback from a new low. There’s always a crowd that missed the first boat.
- Buy at support, sell at resistance. Everyone sees the same thing and they’re all just waiting to jump in the pool.
- Short rallies not selloffs. When markets drop, shorts finally turn a profit and get ready to cover.
- Don’t buy up into a major moving average or sell down into one. See #3.
- Don’t chase momentum if you can’t find the exit. Assume the market will reverse the minute you get in. If it’s a long way to the door, you’re in big trouble.
- Exhaustion gaps get filled. Breakaway and continuation gaps don’t. The old traders’ wisdom is a lie. Trade in the direction of gap support whenever you can.
- Trends test the point of last support/resistance. Enter here even if it hurts.
- Trade with the TICK not against it. Don’t be a hero. Go with the money flow.
- If you have to look, it isn’t there. Forget your college degree and trust your instincts.
- Sell the second high, buy the second low. After sharp pullbacks, the first test of any high or low always runs into resistance. Look for the break on the third or fourth try.
- The trend is your friend in the last hour. As volume cranks up at 3:00pm don’t expect anyone to change the channel.
- Avoid the open. They see YOU coming sucker
- 1-2-3-Drop-Up. Look for downtrends to reverse after a top, two lower highs and a double bottom.
- Bulls live above the 200 day, bears live below. Sellers eat up rallies below this key moving average line and buyers to come to the rescue above it.
- Price has memory. What did price do the last time it hit a certain level? Chances are it will do it again.
- Big volume kills moves. Climax blow-offs take both buyers and sellers out of the market and lead to sideways action.
- Trends never turn on a dime. Reversals build slowly. The first sharp dip always finds buyers and the first sharp rise always finds sellers.
- Bottoms take longer to form than tops. Fear acts more quickly than greed and causes stocks to drop from their own weight.
- Beat the crowd in and out the door. You have to take their money before they take yours, period.
Archives of “double bottom” tag
rss20 Rules for Traders (Must Read )
1. Forget the news, remember the chart. You’re not smart enough to know how news will affect price. The chart already knows the news is coming.
2. Buy the first pullback from a new high. Sell the first pullback from a new low. There’s always a crowd that missed the first boat.
3. Buy at support, sell at resistance. Everyone sees the same thing and they’re all just waiting to jump in the pool.
4. Short rallies not selloffs. When markets drop, shorts finally turn a profit and get ready to cover.
5. Don’t buy up into a major moving average or sell down into one. See #3.
6. Don’t chase momentum if you can’t find the exit. Assume the market will reverse the minute you get in. If it’s a long way to the door, you’re in big trouble.
7. Exhaustion gaps get filled. Breakaway and continuation gaps don’t. The old trader’s wisdom is a lie. Trade in the direction of gap support whenever you can. (more…)
Invest in women and make money from man
Invest in women and make money from man.
Those who study technical analysis will know that a double bottom looks like a “W” and a double top looks like an “M”. When you see a double bottom with a breakout with volume, it is actually a good time to buy. When you see a double top with a downside breakout, it is a good time take profit.
Trading Do's and Dont's
- Forget the news, remember the chart. You’re not smart enough to know how news will affect price. The chart already knows the news is coming.
- Buy the first pullback from a new high. Sell the first pullback from a new low. There’s always a crowd that missed the first boat.
- Buy at support, sell at resistance. Everyone sees the same thing and they’re all just waiting to jump in the pool.
- Short rallies not selloffs. When markets drop, shorts finally turn a profit and get ready to cover.
- Don’t buy up into a major moving average or sell down into one. See #3.
- Don’t chase momentum if you can’t find the exit. Assume the market will reverse the minute you get in. If it’s a long way to the door, you’re in big trouble.
- Exhaustion gaps get filled. Breakaway and continuation gaps don’t. The old traders’ wisdom is a lie. Trade in the direction of gap support whenever you can.
- Trends test the point of last support/resistance. Enter here even if it hurts.
- Trade with the TICK not against it. Don’t be a hero. Go with the money flow.
- If you have to look, it isn’t there. Forget your college degree and trust your instincts.
- Sell the second high, buy the second low. After sharp pullbacks, the first test of any high or low always runs into resistance. Look for the break on the third or fourth try.
- The trend is your friend in the last hour. As volume cranks up at 3:00pm don’t expect anyone to change the channel.
- Avoid the open. They see YOU coming sucker
- 1-2-3-Drop-Up. Look for downtrends to reverse after a top, two lower highs and a double bottom.
- Bulls live above the 200 day, bears live below. Sellers eat up rallies below this key moving average line and buyers to come to the rescue above it.
- Price has memory. What did price do the last time it hit a certain level? Chances are it will do it again.
- Big volume kills moves. Climax blow-offs take both buyers and sellers out of the market and lead to sideways action.
- Trends never turn on a dime. Reversals build slowly. The first sharp dip always finds buyers and the first sharp rise always finds sellers.
- Bottoms take longer to form than tops. Fear acts more quickly than greed and causes stocks to drop from their own weight.
- Beat the crowd in and out the door. You have to take their money before they take yours, period.
Dow Jones -Hurdles :10209-10315-10350
Double Bottom at 9774-9757 ?
Yesterday spurted by 273 points and closed at 10172 level.
Now ,What to expect ?
Just Watch :10209 level
Crossover above this level will take to recent high of 10315-10350 level.
The level of 10412 is Major Hurdle for Bull’s
Three Consecutive close above 10412 wil take to 10630-10703 level.
I will Update about Nasdaq Composite ,S&P500 in afternoon
Updated at 5:37/11th June/Baroda
Trading Do's and Dont's
In no particular order of importance
- Forget the news, remember the chart. You’re not smart enough to know how news will affect price. The chart already knows the news is coming.
- Buy the first pullback from a new high. Sell the first pullback from a new low. There’s always a crowd that missed the first boat.
- Buy at support, sell at resistance. Everyone sees the same thing and they’re all just waiting to jump in the pool.
- Short rallies not selloffs. When markets drop, shorts finally turn a profit and get ready to cover.
- Don’t buy up into a major moving average or sell down into one. See #3.
- Don’t chase momentum if you can’t find the exit. Assume the market will reverse the minute you get in. If it’s a long way to the door, you’re in big trouble.
- Exhaustion gaps get filled. Breakaway and continuation gaps don’t. The old traders’ wisdom is a lie. Trade in the direction of gap support whenever you can.
- Trends test the point of last support/resistance. Enter here even if it hurts.
- Trade with the TICK not against it. Don’t be a hero. Go with the money flow.
- If you have to look, it isn’t there. Forget your college degree and trust your instincts. (more…)