We use the Cash index. $NDX, $SPX, $DJI..etc.etc.etc. Depending on market conditions we can adjust based on the rules outlined in the 2 Bar Charlie SCALP METHOD Manuel.
Yesterday's Fills Holding YMZ3 from yesterday's 9754.00 2BC Chnnl Holding NQZ3 from yesterday's 1420 2BC SM
covered NQ short @ 1425. looking to go long @ 1429.50. (2BC SM) see todays trading plan for intra-day support target.
If you take a quick look at today's Swing Vix you will notice that we did not quite reach the -.40 reading which usually signifies that a bottom has been reached. According to today's Swing Vix you will notice that the blue line has fully formed a bottom positive cross against the red line with much upside potential. this type of occurance usually means that the next leg up will be brief & short lived and that the next leg down will be monsterous! We shall wait and see how the market shapes up over the next few days. Intra-day 2BC SM is now positive the 60min NQ Chart on the decline phase. Much downside still remains. On the Daily NQ we are now entering the RVSL pattern so we can expect a test against this mornings spike up to fail in the near term. Today's NQ 2BC Mom/Trigger @ 1417 was violated and successfully captured the oversold intra-day reversal. Momentum bias is still bullish the 5min NQ Chart intra-day with breakdown soon to come. Intra-day support could be tested this afternoon.
The Swing Vix Indicator did not like the "V" shaped recovery off the low! 10-28-03 11:38 AM Possible delayed reaction Great 2BC forming on your 60min variable. NRC day to continue until after the 2:15pm EST announcement. One more surprise push higher expected then a subtle retreat back into the 2BC Chnnl to resume between today and early tommorow. Not a whole lot of juice left to push prices too much higher though. Anticipatory action: 1.) If fed leaves rates alone = prices will fall. 2.) If fed lower rates = prices will fall. 3.) If fed raises rates = HUGE RALLY followed by collapse. Don't expect alot of action until then. If delayed reaction could see spike buying on the close. We will wait & see. Be patient and wait for the setup to complete before jumping in. ___________________________________________ As I said earlier expect some major volatility to boot before the lion rolls over its backside! Today's price action moved as anticipated by the Swing Vix Indicator. HOT LIST subscribers knew in advance that the 1417 $NDX support level would be the critical line drawn in the sand. Prices quickly retraced off the highs of the day ,tested this support area then bounced slowly to test the previous morning highs in a failed rally attempt. Great FORECASTING. Great Trading week for HOT LIST subscribers! Tommorow is take back Friday so be prepared for some sharp profit taking. 1410 will be an important price level to watch tommorow so be carefull of a intra-day bounce reversal around this price level then a retreat back below critical support.
Today's price chart was full of surprises. NQ @ 1417 ruled the day as prices quickly retreated to and bounced off this to close here in the $NDX.
T-REX, in the beginning of this journal you posted some stop loses. do you use ATR in your calculations at all?
balda, Utilizing a random noise filter our stop losses are mechanical based on the 14 day ATR and a few other intra-day price fluctuations. As a result of our extensive our research we have found that these parameters work best especially during extreme volatility. thank you
Good morning HOT LIST subscribers. The 2BC System is Flat the ES,NQ,YM going into today's session. The 2BC SCALP METHOD is still valid but without a clear market direction it will be difficult to trade the expected NRD. Expected breakout from the range should occure by Monday-Tuesday of next week. However, opportunities are present withen a few good stock plays along with thier corresponding Single Stock Futures(SSF's). See this morning HOT LIST on how to trade these. The 2BC System had a great week in the Stock Index Futures. Good Luck. Have a nice weekend.