|
PureBytes Links
Trading Reference Links
|
Potential break away gap in cocoa this morning above current
resistance. One negative to taking the trade would be that
the market is responding to a news item this from last night
instead of being a clean technical phenomenon. Break away
gaps have the advantage of requiring small stops. Either
the gap holds or the trade is invalid. A safer entry would
be buy on close. Some even recommend waiting for three
days on the theory that if the gap hasn't closed in 3 days,
most likely it won't close at all. I find that observation
to be inconsistant. Schwager thinks otherwise.
Scheier
|