Sabtu, 09 Oktober 2010

Price action observations & trading system contemplations

Trending and over extension of the move doesn't compromise the trend momentum.

Different time frames and fibs - now that moves exceeded the conservative projections I focus on the momentum concept as it is very insightful to learn never to fight a roaring trend and always let it go until you see a rising volatility, reversal chart pattern or some other sign of trend weakness.

Some observations on using the 13-MA in a trend.
I have drawn the consolidations that follow the price thrusts. Clear Support & Resistance levels are shown.


Time & Price relationship.
MAs are enveloping the unfolding trend but they lag and this actually helps to project a horizontal range trading after the motive wave until the MA makes up the space and then the trend move ensues.

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