Tuesday, January 24, 2012

Wait and See

Hi Folks, Ok so the markets are a little ahead of themselves here so a pullback is expected. However I don't see a setup for a major pullback yet. One major thing I look for is the Moving Averages to flatten out before I really get excited about a short. This type of setup usually has a decent pullback which causes the MA's to flatten. Then you get a rally back up into the flattening MA's and that is when you put the better short on. I will be watching for this. I use multiple time frames when looking at charts. So when I say I am waiting for the moving averages to flatten, I am usually referring to the 30 and 60 min charts at a minimum and possibly longer. I also like to see the MACD's become inverted at the same time. That is when the signal line crosses below the MACD in the longer time frames. Please email me if you have questions about this. Thanks and good trading, Tim

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