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"The bipartisan push for increased homeownership through low interest rates and relaxed lending standards destroyed wealth rather than creating it."

 

"Long before the subprime lending market erupted in 2004, it was already apparent to a few clear-eyed and contrarian economists that the housing market was possessed of the same irrational exuberance that had propelled the 1999 technology stock bubble to such gravity-defying extremes."

 

"Many of the same individuals who did not see the crisis coming are now loudly assuring the public that the worst is already past, whereas those who correctly anticipated it tend to be somewhat less optimistic about the future."

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Dr. copper working into critical area after 2 bounces off the trendicator....just put in an important looking pivot at 3.02, so if it comes back under that, might be the first sign of 900 day beating about to be dished out.....

 

If instead it explodes upward, may be a whole nuther scenario about to play out.

 

My money is on a quick whacking to the 200 day.....

 

But I could be wrong......

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Yup, just got triple bushwhacked by the 2 hour AND 4 hour AND 8 hour simultaneously, and hourly support is at 147.30. There is rising 200 hourly support at 148.25 so it might hold that line as well...since the 200 has just crossed over the 900...

 

The daily is a congesting mess right now, so some ping pong likely.

 

If it somehow gets above that big time triple resistance, then a huge air gap on daily to 200.....

 

If it plows back thru the hourly downside, the bomb bay doors start to open....

 

cool. is the 200 a simple or exponential moving average? :unsure:

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:lol: :lol:

 

Trading any single moving average is going give you many whipsaws in the congestion zones. Again this is due to the two different types of market behavior, compression and expansion.

 

That is why you need to LOOK AT MULTIPLE TIME FRAMES for fine tuning entries and exits.

 

The the 200/500/900 MA give general areas to be on the alert for potential reversals/breakouts/breakdowns. I don't enter the trade until I see the shortest time frames start to give the signal, and then look to see confirmation of the potential new trend at each longer time frame as the turn progresses.

 

So for example, if price is consolidating around a 900 hour MA and the 1 to 5 min charts start to look like they are ready to make some sort of move, you try going in the direction of that move, and as long as they hold, you stay in the trade. Usually within a few hours you will know whether the turn/punch thru is real, with an incredibly small risk exposure if you stop/reverse yourself out when the 5 min setup fails. And if you have timed the entry on the 5 min chart correctly, by using the 1 min to time your entry, your stop out point may actually be at a profit. Just this one filter alone can save tons of whipsaws, and if you do get a whipsaw, the loss is exceptionally small, in relation to the potential trend development from these key pivot areas.

 

And then say you start to turn off the hourly 900 and hit the 5 min resistance/support line, but in this particular instance, it comes after a double bottom/top with divergences on an hourly chart. Would it make sense in this case that the 5 min line might just give way, as the longer time frame may have just put in a turn? And if for some reason, price fails to get thru the 5 min 900 after a few hours of churning, that may be good sign that the move off the hourly is weaker than expected, as once a sold turn off an hourly is made, generally the 5 min 900 should fall shortly thereafter.

 

It's all about the context of where you are in the overall scheme of things....

 

Why do I feel like the Billy Crystal in City Slickers trying to explain the VCR?

:lol: :lol: dharma

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