On 25 February, Position Sizing Calculator

How can you tell when the market will offer pleasant retreats or when it is negotiated out of momentum? The best way to check is to look at the ADX indicator.

Readings below 25 indicate that the market will offer nice declines to initiate the swing trades. Readings above 25 indicates a strong trend - setbacks will be low, or nonexistent.

As long as the ADX indicator is greater at 25 and sloping upwards, the market will continue to trade off the coast of momentum. Momentum is lost when it starts to go in lowering.

It is not a perfect technical indicator (are), but it does a good job of you say the current strength of the trend.

You do not know if you already know about this but the EWI has their 2013 report state of markets available. It's a worthy read - and it's free.

Download here

I do not know how long it will be available then take it while you can!

Take a look at the following table:

Block H & R (HRB) recently broke out (arrow) firmly through the resistance (highlighted). This stock is now in mode first recoil and could create a great trading opportunity if it prints a reversal candle.

The only problem I see is that this stock is in a mature trend that could lead to failure mode.

However, it is certainly one to keep an eye, when the market resumes its trade.

I know from experience that a stock has to move in your favor in a day or two after your entry. If not then it will probably go against you. Here is a recent job that I had:

This stock has pulled back and formed a tail at bottom, then an engulfing candlestick pattern. So, I bought the stock. Then I waited... and waited... and the stock has gone nowhere. If I dump a few days.

The first question that comes to mind when this occurs is:

Where are the buyers?

They are not there.

Time to get out.

On 15 February, Swing Trading Blog | What are the best models of candlestick for shorting Stocks?

Written on 15/02/2008 08: 52 by Craig

If you could only trade 3 candlesticks for shorting stocks, what would they be?

I asked this question by email and it me did not take very long to find an answer. I trade again and again the same candlestick patterns!

Here are my top 3 bearish candlesticks:

It's my favorite of all time on the short side. The key of this candlestick pattern is in having a long tail and a small real body. A rally to a major resistance area and an increase in the volume of the previous day are other factors to consider.

I want to see this model after a very quick to move backwards against the resistance. Give it an added value if it is located just beside a trendline down. I like the first spark plug to be significantly smaller than the second.

Lately, it seems that this model becomes more reliable. I love how this model retains the other traders on the wrong side of a move. It is a clear indication that the bulls have lost control. I want to see a deep penetration in this first candle.

I don't think that chandeliers are the Holy Grail for stock trading. In fact, I think that they are virtually worthless without other factors on the table to save the implications of these.

Factors such as...

A movement against a strong downward trend.A multiple "up-to-date" resistance rally.

So, what are your favorite candle holders to trade on the short side? Those that you find yourself trading more often?

Friday, February 1, 2013-jobs report

First of all, we have more free stuff.  Was heard, it was, but I learned today, Forex Peace army has developed a free autoclick.   It seems to me to be free, not coil site registered user beta-test.  It is new, so give them time to questions that may arise.  You can follow the discussion and download it here:

http://www.ForexPeaceArmy.com/Forex-Forum/Forex-News-Gun/23015-Introduction-Forex-News-Gun-Diamonds-Trading-Signals.html

It is called the Forex News gun and discussion thread would trade plans and the "Spike" after the trade, so follow the plan.

4: 28 Am EST for the UK release of the Manufacturing PMI.  I'm not a fan of the Commerce report, which comes ahead of the US Non-Farm Payroll report, which, however, is presumed to be at before so I'm going to set up 51.4 on the GBPUSD trigger 3.0, because I believe that the "big money" to wait to commit resources to

At 8: 30 am EST the US publishes the Non Farm Payroll report change.  Expected a 155 K to 160 k, I'm going to set up on USDJPY (reference currency) to trigger the 30 K.  We have an unemployment rate of 7.8%, who is supposed to be

At 10: 00 am EST the US publishes the ISM Manufacturing report.  After the expected 50.6 50.7, set the USDJPY trigger a 3.0, but suggest that you can just change it in the same direction as the NFP that trigger if, and only if the price is significantly retraced NFP-version of the currency/index.

Good luck to all!

Categories: none

On 1 February, Swing Trading Blog | Do not beat the market

Written on 02/01/2010 07: 56 PM by Craig

The stock market has taken a beating lately. Do not try to beat the market with sales on the long side. You will lose. Perfectly good trading setups can and will fail. It is the beginning of the year so that you do not want to spend the rest of the year trying to get stupid errors now!

The market is very oversold, so you can play a long rebound side this week if you do find one risk very low and you are nimble enough to get out if the market continues to tank. If not, just wait for a rebound play the short side.

There's a lot of work to do if you are not actually trading. You can run scans to look for the lining of bosses (double tops, triple tops tops, head and shoulders, etc.) so you'll be ready to trade on the short side, if the market rebound effect.

One final note:

It is possible that the market will recover fully from this recent decline (the weekly charts of the major indexes appear to be always fine). Therefore, if you are not negotiating on the short side, you can stay in cash and wait to see if it really does not happen.

Good Trading