Thursday, December 13, 2007

And now... the consolidation


Today, more challenging trading conditions have emerged, as expected. However, on the tick charts, there are still some excellent trading opportunities. They just aren't as profitable as the past two days have been. The good news, however, is that I can trade both directions! You have to watch the charts tick by tick to trade today, since you must be prepared to exit and enter trades very quickly. Execution is critical today!

When the Bollinger Bands go flat, the Bollinger Moving Average flattens, and/or the Bollinger Squeeze indicator changes from blue dots to green (the first change is always a green dot) and then red (after the first dot, which is green, the subsequent ones during low volatility are red), then it is best to NOT take trades. Time to sit out of the market!