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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: KymarFye who wrote (64262)	12/14/2000 2:41:48 PM
From: eichler	Respond to of 99985

That's not OT, is it? Market Direction and trading it, long or short? I have found the best shorts are initiated with heavy weight on the Daily chart signals. Shorting near or after a downturn at the top on the daily chart has a much stronger probability of success I think than waiting halfway through a move and jumping in maybe somewhere in the middle of a move based on a short term indicator. IMO, the last couple of days were good shorting opportunities (even today) if we are indeed going to retest the bottom so far and possibly exceed it. Then, patience, giving the idea time to play out completely. Actually, the 5e8s MA system (60 min charts) as used by the Befriend The Trend thread is very helpful. Crossovers are not that frequent and reduce whipsaws on shorter time-frames. It means trading less and reduces stress considerably. This week, I have only made one trade so far (shorted ATHM Mon - too soon, could have done much better but looking good now), and feel very comfortable right now sitting on it until I get a 60 min 5e8s crossover. True, sometimes I am in a more wild mood than this week and will play 5 min charts. I guess one advantage with this trade is I believe I have caught a move near the top of a turning point in the broader market, a luxury not often enough enjoyed. Also, selling the rally should be easier than buying the dip in a bear market as we have now. I've seen it explained light-heartedly elsewhere a couple times like this: Turn the chart upside down and pretend you're playing a long breakout! LOL Regards, Eichler