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Quite often traders get wrapped up in the "it's complicated, so it must be
good"
mindset. I have found just the opposite...The simplier my strategy, the
more profitable(with less anxiety) I experience.....
Example.........(It's not 100%, but nothin' is)
SPZ made a high @ 992.25
SPZ made a low of 966.50 or 25.75 points.
multiply 25.75 * .618=15.90 (.50 and .618 are very common retracements)
Look for a retracement to 982.40
High for the retracement???? 982.00
Then look for another drop of approximately 25.75 points.
982.00-25.75=956.25...the low yesterday was 956.00
Sure the S&P may go down more, but would I be happy with 20+ points?????
This type of swing trading is applicable to ALL markets...stocks, commodities
etc......It's nice to know that simple does work.
Hope this gives ya something to consider.
Tom Stein
comfut@xxxxxxx
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