Advanced Trading Methods

[Y worry Murray]

I like the idea of momentum trading as opposed to swing trading. I suggest that your success is due to your choice not to predict reversals which is very difficult to do consistently. An overbought or oversold market will frequently get more so and quickly chew up your account.

I can see 3 pushes up in a bear wedge although one would expect to see a trend channel line over shot & reversal (TCLR) to be confident that it is complete. There is also a intra-day DT and this is what the swing traders have seen.

In my opinion it is too early to be swinging short. A reversal requires 1st a trend line break (TLB) then usually a back test of the TL and even a multiple top or bottom (not necessarily in that order). Ultimately a lower high (LH) or higher low (HL) before one can be confident one has taken place.

Entry can be at a prior high if a double top (DT) has formed with a tight stop or the inverse on long entry. Unfortunately the stop does not work if holding ETFs over night (ON). Therefore waiting for a LH or HL becomes ideal entry. This is then basically a momentum trade!