Because I use other indicators too. Also, let's say the market obviously turned and it is up from the low 4-5 ES. Then the trader don't consider seriously shorting it (intraday swing mentality) until it reached 10 pts from the high. A good example would be yesterday, when the SPX went up 11 pts from the 11:35 low and then dropped back a decent 6 points. So that 10 pts was very easy to see/play. The next big turn came after 20+ points from the low and I guess at that point it was obvious too see that 11:35 was the LOD.... So the rule of 10 yesterday played out 4 times: 1. Morning high to 11:35 low 20 points. 2. From 11:35 low up 10 pts. 3. Afternoon high up from LOD 20 pts. 4. From afternoon high a big quick drop, 10 pts. Now usually you don't get this many play on a single day....
Monday, high was 64, signal was ~ 54 I bought at 53.5 as posted last night. I use 2 -2.5 stop depending on my fill. With 2 -10+ target depending on what she wants to give. Another one was on cash, previous support was 49, and monday we went 10 under previous before bouncing. http://finance.yahoo.com/q/bc?s=^GSPC&t=5d
Some will disagree with me but Sell half at target 1, move the stop to BE to give the rest a chance to turn into a much bigger trade, builds confidence and cash at the same time while allowing you to ring the register and satisfy your brain's fear and greed.
I told you to get off that stuff...we didn't speak last night or any other night for a few years....this is not a team sport...nor do i care what happens after 3:00 cst..your time to quit also if u r smart
i will go for the day out of respect for those who are serious about the business........happy trading..
I prefer moving all in with my full position and letting the full position ride for the bigger winner. This is my view. Selling half gives an emotional bounce, but the bigger winners are really what successful trading is about.