|
PureBytes Links
Trading Reference Links
|
Mark wrote:
>Thanks for your posts but there is something I don't understand, for
>example, sept Swiss ID breakout and MTX bullish, does it mean that the
>swiss or the dollar is bullish ?
>Thanks
>Mark
Mark,
ID and the MTX are designed specifically for a short
term 1 to 5 day period. ID breakout days indicate
that the market has potential for a signifigant
breakout from the previous days trading range,
to the upside OR downside.
The MTX is similar to MACD. It can show trends that
have potential, and it can also show if the continuing
trend is likely to fail. IT also tracks volatility.
If the market is traveling downward (the Swissies
are a good example.) and the MTX indicates that the
market has reached it's maximum potential this is
considered bullish.
In fact it helps to quantify
the situation for the trader. In order to continue
in its original direction the market MUST become
more volatile. In this respect, when a Bullish
MTX is violated, you KNOW the market is serious
about going down.
The death knell for the Swiss right now is the
intraday pattern: Strong in the morning and weak
in the afternoon. I've been buying it early, and
dumping it before the lunch hour.
When we start getting selling late in the day,
this usually means the larger concerns are
interested in being short. These sellers have
the strength to provide all the volatility
they need!
So, on the Intraday level (At least for now) Buy in
the morning sell in the afternoon, and think twice about
going long on any kind of intermediate or long
term strategy.
By the way, there's a good analogy I can use here
for tringle stomps.
If you've ever seen the movie RED OCTOBER, you
heard them mention the submarine maneuver called
"Crazy Ivan", where the captain makes an abrupt
about face in order to see if anyone is on his
tail. Stomps are just like that! A break out of
a triangle, followed by an abrupt about face
(Usually back to the apex of the triangle), and
then a resumption of the original breeakout.
You know, I like that so well, I think stomps
just got re-named!! Thanks Mark!
Hmmmm..... Seems I'm going a long way to answer
a simple question. :)
The Swiss franc is weak.
I don't trade the dollar enough to have an
opinion.
Thanks for reading the posts,
Walt Downs
CIS Trading
|