Sunday, September 13, 2009

HSI's Fan

From the HSI fan we can tell at latest breakdown, price is unable to reach the usual distance between fan lines. This suggest something out there is supporting the market. When price subsequently breakout from a mini HHHL, it marks start of a strong rally.


On cycle of stock market in general:
Trending -> Ranging -> Trending -> Ranging -> Repeat

Trading method to capture above:
Position long -> Swing long -> Swing short ->
Position short -> Swing short -> Swing long -> Repeat

When asked what kind of trader:
Trade long term (weeks to months) using short term (day-to-day) movement to tell me where price is heading. Then follow it. I can stalk a stock for months before deciding that is the time to buy it.