Replies to post #38927 on ETF SWING & DAY TRADING

[gloe]

"The 34 is the key. Between 14:00 and 14:30 the 3xPB was all red and the price was above the 34. Between 13:00 and 13:30 the 3xPB was all red and the price bounced off of the 34."

The reason I would not take those shorts, no matter what the 3xPB or the CCI said, was because (1) the price had previously broken below the 34 but got back above it. Telling me that the big boys don't want this to break down. Also, unlike the first short near the biginning of the day, the price was very close to the 34 ema at those points when the 3xPB turned red again. "Don't enter a new short with price very close above the 34 ema." Might as well wait to see if it would break. (2) Not only did the price recapture the 34, it recaptured the previous day's high (the horizontal green line on my chart.)

It's all about price support and resistance.

[gloe]

Those RUT and NDX charts are good examples of the idea that it IS okay to short even with the price above the 34 ema, as long as the price is stretched far enough away from the 34. Then, even if the price wants to hold the 34 as support, you already have a good entry from farther above it and can just take a small profit if the 34 holds.

[Nocona]

On the Q's while working the 50's on a drop below 50 at 11:30 the price was below the 34 then at 11:50 the CCI went above 50 as the price went above the 34. A 3 cent loss but it showed what the 34 did at that time.

Out for a while.