Got that right. A setup ala 2/27 magnitude plus. But until then just trade what you see, not what you think. Osorico
I know we all know this, but just a friendly reminder that by nature the tops of markets can be quite violent, not saying this was a bad trade but maybe just a bit early... For my money I am still on the buying the dips train, out at close, until proven otherwise.
This is starting to get to me, I see the monthly weekly and daily charts pegged with RSI 70+ and its making it almost impossible for me to get long, yet the market keeps going higher and higher with out me. How do I cure this, anyone have any ideas please be serious, HELP!!!!!!!!
I dealt with this demon, so let me say this. This is currently a bull market. That means the slope is up. That means higher highs/higher lows. We have that now. Of course, it will end at some time, but you cannot know that time, even when it is upon you. You cannot know until after the fact, so you must act in accordance with what is now known. Make the money on the long side while it is still working. When it stops working, this is the market's way of giving you a heads-up that things are changing. Until then, adjust your thinking to go with the flow. When we get a lower low and then a lower high in place, you can short with the trend. If the market starts chopping, revert to support/resistance type trading. Make your strategy fit the market's characteristic and you make money. Trying to win against the market is 1) difficult (I mean to say ass-puckering) and 2) mixed results follow this behavior. So, take a deep breath, stop immediately trying to tell the market what to do (it does not care or abide by anything you think) and match your entries to scenarios likely to make money in this market, not the next one. Hint: buy low volume pullbacks, and stop shorting the new highs. Now, wasn't that easy?? Oh, and one final thing. When you get a bad entry get the hell out as soon as you know it sucks. And when you get a really good entry, don't throw it away; make them pay dearly for it. Good luck.
Drop the RSI. I dropped it years ago for the xact reason you say here: during bull or bear runs it is always pegged off scale. It's just a statistical thing and it works only 70% of the cases. The 30% are the most worthwile ones tho. Ursa..
here's a hint, d00d ignore RSI overbought really means nothing the market can stay "overbought" for indeterminate periods of time, so how is it useful?