I also love intraday falling knives. I scan for them and when I get a signal, market in indiscriminately! Theres no better feeling than catching the bottom of a long tail. Shorting shooting rockets don't seem to work as well though so I don't bother with them.
just to get newbies not too much into it and better add this strategy after a decent learning curve there is a nice sample (though not a classic FK) showing knives still can cut. JASO
Intraday fast downward phases are definitely good - just as intraday fast upward phases are good. But by trading upmoves and downmoves as they follow in sequence, Open through to Close, you are always the correct way round for a very fast tear in one direction or the other. It is a curious thing that while, of course, big fast scores are satisfying it is your daily net profit (eg CL, YM) which hammers home your success day in and day out.
Today's trades were based partially on this 30 min chart <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1790231>
You can't make more money scaling out if you are following a system. No matter what parameters you use, it is always better to exit fully. This thread is a great explanation: http://www.elitetrader.com/vB/showthread.php?threadid=78975&perpage=6&pagenumber=13
thanks for the linc!!! I see the arguements for both scaling out and letting it ride. I can see how newer traders should scale out until they get a feel for when to sell out the whole thing. I know if I didnt scale out and the thing whipped around on me tht it would screw with my mind set, especially if this happen several times. My only question for holding on is how do you know when to sell? Nonone knows when it will turn around or how far it will keep running. Have yet to meet anyone who knows the exact highs or lows of a stock. But neither arguement is wrong as long as your making cash!!