And one for the road on the slap down........... http://www.charthub.com/images/2006/11/20/ES_317_VB_2.png Flat now and done for the day......that was a decent move.
If you're going to use indicators for finding tops or bottoms, have atleast one over bought- over sold indicator, like MFI, CCI, or RSI. These indicators can be in over bought/ sold levels for long periods of time, so they can be misleading. I like to look for what I call a "reverse J" pattern, like the one here for HITT http://stockcharts.com/h-sc/ui?s=HITT&p=D&yr=0&mn=4&dy=0&id=p18745074814 Look for when the stock is "rounding out"... when it begins to curve up or down, thats one of my signals.
Cash - I like the TSI (Ergodic or True Strength Index) for a visual price based reference......... http://www.charthub.com/images/2006/11/20/ES_317_VB_3.png Here was a good LONG delta divergence signal with the Ergodic cross (I used this signal to flatten my SHORT position).
Only those who are using time forecasting methods know when top or bottom is approaching . There is a handful of sites who are dealing with this subject, ask for a free trial pick some brains, you might get an idea or two how to approach forecasting tops and bottoms. www.tradingpro.com www.wolfewave.com www.perfecttradingsystems.com Good luck
A day trader should make money and close all positions every day regatdless it is at top, bottom, middle or sideway......