Tuesday, March 27, 2007

Day Trade 3 - TAM

This is a trade I didn't take - It was a valid trade but I limit my market participation on these kinds of days to selling day trades and buying swing trades only after noon. But it would have been a good one - and nothing difficult about it.

Another RSI(2) all day long with a couple of tweezer bottoms, but this is where you have to be disciplined. With no pivot point to base this trade against you are taking a big risk on a down market day. However, you could take it as an RSI(2) trade at 14:30 because it just crossed S1 and held it from there to the end of the day.

Why not jump out on those two red candles? Have you never seen a return to 4? The crossover at 15:00 informs this trade and mandates that you hold it to the end of the day. Watch for the crossovers - they are powerful indicators of a trending stock.

1 comment:


Nice material on day trading.