Tuesday 26 June 2012

Gold Yesterday

I was trading GLD yesterday using options. I was swing trading as well as day trading around my position. You can see that these are 5 minute candles and that the market told me at least three times that the trend was changing to UP, and that it was going to move.


All these markets exhibit very similar signs of their change of trend. It doesn't really matter what periodicity you use as long as you realize that the longer the periodicity, the larger the stop required, as it takes longer to know you are wrong. It's all about identifying the trend and trading the pullback.


4 comments:

  1. What are you using to know when you are wrong? MA cross? CCI? Volume Delta?

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    Replies
    1. Anon 17:52, S & R, context, patterns, momentum. Look at lots of examples and see what the picture of a failure looks like. Good idea for a post.

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  2. Most of your entries seem to come following a bar counter to the direction of the pullback (ie in an uptrend, once price has pulled back to the EMA you enter following an up-closing bar).

    What information accompanying the formation of this entry bar alerts you that buyers are re-entering the market and the pullback has ended?

    Thanks.

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    Replies
    1. Anon 04:29, Yes, the thrust after the pullback is the usual entry unless the S & R gives me enough confidence. The picture I see has a high probability is what makes me pull the trigger.

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