Here is an article about market volatility that should make daytraders happy. Hopefully I'll make my millions before volatility dies off, then plop that into some mutual fund and ride into the sunset http://www.marketwatch.com/story/a-recipe-for-stock-market-volatility-2011-10-18?link=mw_home_kiosk
Trendlines abound.. Closed break of either should decide where it goes today... 2333 and up or 2320 down to fight 2305 area again? Large declining TL's usually broken to the upside.
Due to this little tit-bit (bias?) I went long at 2320 AS THE LOWER TL BROKE and lost a quick 5 points.
It's a box.. 10 points.. you'd think: sell top, buy bottom?? Nope.. at each end I am convinced it breaks this time.
My general rule, which I often do not follow, is to allow a trade up and a trade down from what appears to be a range. If both are stopped, I should sit back and wait for a clear range breakout and pullback for any further trades. But I get tricked all the time into making bad trades.
Trading is really something... Some decent support mid 70's and Daily Volatility almost used up. Other life beckons... +9.1 after comms.
I am convinced the best way to trade is to take trades AT levels (2352 yesterday, 2310 today) with relatively small stops... IF stopped out you can still get in on the way back down which loses me money A LOT as the wiggle invariably stops me very often.. Now the trick is properly figuring out levels AND trading WITH the overall trend BEFORE the daily bar gets large. The trading reversals in a trend is tough as such trends that present opportunities seems to be uncommon.. If you didn't short 2310 today once 2300 was broken properly there were no pops unless you descend to a very fast chart.. <1000v which I don't care for. Probably a mix of the 2.. Thoughts?
On the other hand there are pullbacks and there are pullbacks... the bounce to 91 qualifies and a trader that got short high 80's assuming he/she missed the first decline still made relatively stress free money than those (me?) that would not wait for the 2300/2310 box to be resolved and over-traded. another take on my prior post.