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NoDoji
Registered: May 2008
Posts: 8107 |
08-29-12 09:50 PM
Quote from lwlee:
Learn to short the pullbacks. Plenty of those today.
It's easy once you learn how, but it's one of the most counter-intuitive things I've ever done in my life, and despite a couple years of trend-following experience, there's a part of me that tries to convince me the trade will never work. I've just become accustomed to it and I know that the less comfortable I "feel" about the trade, the more likely it is to produce a quick profit.
Add: The final pullback in BPT today was clearly reversing off the low of the day, and the only thing that could possibly stand in the way of a fine rally was a pesky 20-bar moving average and an overbought stochastic on the 5-min chart and if you've been following the professionals' advice here on ET you know full well that TA DOES NOT WORK. Only a totally insane person would've considered shorting there and targeting a new low. 
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lwlee
Registered: Dec 1999
Posts: 1102 |
08-30-12 12:37 AM
With experience, you will realize the last 1/2 hour is bad time for pullbacks because everyone is closing out their day.
Quote from NoDoji:
It's easy once you learn how, but it's one of the most counter-intuitive things I've ever done in my life, and despite a couple years of trend-following experience, there's a part of me that tries to convince me the trade will never work. I've just become accustomed to it and I know that the less comfortable I "feel" about the trade, the more likely it is to produce a quick profit.
Add: The final pullback in BPT today was clearly reversing off the low of the day, and the only thing that could possibly stand in the way of a fine rally was a pesky 20-bar moving average and an overbought stochastic on the 5-min chart and if you've been following the professionals' advice here on ET you know full well that TA DOES NOT WORK. Only a totally insane person would've considered shorting there and targeting a new low.
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Daal
Registered: Oct 2002
Posts: 8997 |
08-30-12 12:46 AM
Spread is brutal here, be careful
WHX had a similar story and put MONSTER rallies after brutal sell-offs. Even though it was totally irrational
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NoDoji
Registered: May 2008
Posts: 8107 |
08-30-12 01:50 AM
Quote from lwlee:
With experience, you will realize the last 1/2 hour is bad time for pullbacks because everyone is closing out their day.
Yes, but I have rules and one of them is "If something randomly catches your eye [BPT hitting the lo ticker] and you notice it's in a strong trend, look to get in on the next pullback."
And I did, and the darn thing, bless it's trending soul, printed new lows right into the close, so it appears the falling knife catchers were closing out their day and probably not enjoying it much.
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NoDoji
Registered: May 2008
Posts: 8107 |
08-30-12 01:52 AM
Quote from Daal:
Spread is brutal here, be careful
WHX had a similar story and put MONSTER rallies after brutal sell-offs. Even though it was totally irrational
The spread was ridiculous at times, I swear it was .60 on occasion.
I don't hold overnight, so not worried about monster rallies 
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