SPDR S&P 500 (SPY)

[USDollar]

Do charting it like a pro, draw TL and follow them, not just indicators, use them together.

This is also the basic for channeling, a great tool.

So forget for a mom of gov BS and focus just on chart. No lies there!
(I'd say don't really forget of gov BS as it's the support fwiw)

Some of you want to see if there is a top or we go higher.
SIMPLE, to quote someone. As long the price keeps going higher or same level ranging -> THERE IS NO TOP (thus no selloff will happen), so do yourself, the person you love the most, a big long due favor and:
1. STOP bittering yourself with "I can't believe it"
2. STOP putting money on the shorting side (daytrading may be an exception)
3. HOLD (RIDE) the pig(s) ('s' is for the banks etc)
Do this and you'll be one happy trader.

So, when you see a profit taking lil drop, mark that in your mind as pivot1. If the price rallies but NOT to same high or higher as pivot1, and then drops again, then mark this second drop as pivot2.
As soon as you have pivot2 draw a TL from the two downward slanted tops. THAT is your top-line. You can now exit at this resistance line, or, if you so wish you can short inside the structure with a clear stop-loss formed by this resistance line.

When the TL breaks you can deploy money on long side.
Rinse and repeat.

I rest my case !

One more important thing - do all this on an hourly chart with clearly seen candles (I assume you know candlesticks).

Right now we do have such a resistance TL, so you can go right ahead an kick the tires on it and see just how perfect it works ALL THE TIME.

There is nothing to it - SIMPLE ;)



(p.s. there are few "small" details of increasing the efficiency of this method, but 1. you can add your own, and more importantly, 2. even without them this works gloriously. You should swing a position with this method, and daytrade in between for beer money -> SAME DIRECTION daytrading)