Alan,
Over the past few weeks, as you saw today, I've been strapping on my diapers into the world of TA as it can relate to my understanding of straight tape reading principles. I was looking over your site tonight. One quick question when you have time:
I notice you said when "scalping" off the 1 minute chart, you need to know how the stock looks on the 5 minute chart. Is this solely to understand where resistance may lie on the broader time frame assuming a long position?
Further, if it's not too much...I've been noticing most traders using the 20 MA as short term resistance on the charts...
I've been watching this trend line during each phase of my entry and exits from tape reading...i.e. when the volume spikes or price spikes, many times it runs into this 20MA and on the scalp, it's where I'd take my exit...if the stock looks like it has room, I'd take 1/2 here and hold the rest for a break of the 20 MA resistance...fair plan?
Is the 20 MA used that much by you in your setups, does it hold that much weight in the methods Vadym and I employ and what does it matter if I use 1 minute, 2 minute, 5 minute, etc. Seems each has specific value to specific methods, but as I said, I"m still in the diaper stage of application of TA to tape reading principles we use.
I know you are busy so at your convenience is fine. If this answer requires a chapter of information to answer, please just tell me to "buy the book" <g>
Thanks,
Chris |
