Thursday 4 October 2012

This Chart Talks To Me

Again, the Profile tells the whole story and the bar chart confirms and gives the timing.

Here, the DAX opened above value, traded up just through the VA of the 10/02 split along the interposed zipper, making a double top. The bar chart showed the overbought but it was the last peak of the big CCI that corresponded with the resistance on the Profile. So we had a buy although on a 50% size on the open and a 100% sale as the market hit resistance.

The next short was as price went into VA of 10/03 and it flew down to VAL. In fact, the bar chart gave the sell at just above the VAH but the confirmation of the Profile was the entry into the VA.

I'm flat now and will either buy the VAL or sell a confirmed break. The market is waiting for the Spanish bond auction results as I'm writing and the market may react on the result.


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