Friday’s Trading

I still haven’t been able to make a video that youtube won’t mangle… so today we’ll go with a screenshot.

Three signals, two viable. This leads to two trades for two nice wins. A nice way to end the week! The entry points are at the vertical lines, and the profit taking areas are at the ellipses.

Why isn’t the middle one viable? As you know, my only criteria once I get a signal dot is “are we trending against Alla’s Average?” (the yellow line over price action). In that middle signal, you can see we were nowhere near Alla’s Average. I tell people that in a trend, we will pull away from Alla’s Average, then chop back towards it, then pull away again. That’s exactly what happened, and as you can see, it’s very stress-free to grab the two big pushes down if you are patient enough to wait for them.

Even if your judgment faltered, and you took the middle signal, note that bonnie’s bar color (in the first subgraph) turned green almost right away, which would be your signal to bail on the short trade with a tiny loss. Yeah, my charts are like a well-oiled machine! :-)

Have a good long weekend, everyone… I’ll see you Wednesday (even on long weekend weeks, I take Tuesdays off!).