About 12:45 you can see the crossover clearly. It didn't net much but this is just an example of how it works.
This is DNDN and this shows where I should have sold the stock on Wednesday morning rather than waiting for it to hit the stop loss. The 5th bar in shows the cross over.
The third bar shows the cross over and this one nets a good return.
They don't always work so you have to put a stop in but in a day trading situation these are as powerfull as you are going to get. Use the top of the cross over bar as your stop point and watch your candles for an exit.
Remember - one candle does not make a cake - which is just my obscure way of saying - wait for confirmation before acting.
This works on every time scale from minute bars to monthly.
And once more even though you are as tired of reading it as I am of writing it - stock market gambling is not for the weak of will, spirit, or heart - it takes real courage to put your hard-earned (or otherwise) money on any U.S. company with their proforma earnings and GAAP (which rhymes with crap) bookkeeping methods - never mind a foreign one where regulation is just another four-letter word.
2 comments:
Great analysis. Do you normally take your intra-day trades off the 15 minute bars?
Mike
Yes - 15 minutes are my favorites - followed by 4 minutes (in a volatile market).
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