Monday, April 18, 2011

GS - PAPER CUTS

1MIN
Thought it would go to lows again:
  • Prior breakdown area
  • Break of uptrend line
  • VWAP overhead
The ingredients of a continuation down move were there. However:
  1. the probability of success decreases during noon hours
  2. not all systems create 100% win rate.
  3. mother market can do anything she wants
  4. always trust your stop and get out when wrong (did a great job there).
Need mental flexibility to buy into the uptrend for a reversal day play.
  • Ask yourself, what's the most current trend in play? 
  • Are we above vwap? are we creating higher highs and higher lows?
  • Trend is good until broken. ALWAYS GO WITH THE CURRENT TREND and play it until it fails. 
  • Do not be afraid of intra day resistances as they are weaker when price is hitting major support on a longer timeframe!!! in this case, GS hitting a support level on daily chart.
WHAT I SHOULD HAVE DONE AFTER FAILURE TO FOLLOW THROUGH TO THE DOWNSIDE.

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