My reoccurring theme here is to make things as simple as you can. I do this because simple equals easy and the easy way is what I look for to do when I need to make rapid decisions for 5 1/2 hours a day. I don't need to take in multitudes of indicators in order to make a trade.
SKX is shown here as it breaks to new lows. That is my signal to short it. I act on the signal.
SKX goes the way probability suggested it might so I add size.
SKX keeps failing so I am letting it make me money by keeping in the trade.
It gets to the point though where it becomes prudent to take the $2+ run in profits and I cover on the biggest volume candle of the day, which not coincidently become a doji on the 15 minute chart. That is a signal to go long.
Signals are what you are after. The market tells you what to do if you are prepared to listen to it.
This trade was very easy with no fakeouts or misdirections. They aren't all like that but you never know what will happen so it's best just to go with the flow.
moments later 15 minute doji appears
time to go long
sell the long
2 comments:
The SPY was rising and approaching the HOD. I assume you felt the downward pressure in the specific stock was strong enough to take the counter-trend trade?
Gracias,
Blake
i never look at the SPY. i was looking at SKX making new lows and getting very close to breaking long term support. It ended up blasting through it.
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