Wednesday, January 28, 2009
10 yrs. of Observation
After years of listening to others and reading everything I can about the markets, I've come up with the most simple chart, on a daily bases, to help make wise trade decisions. It will simply be referred to as RedDirtsDeadBeatChart. The blue moving average should be well known to all those that read the Wall Street Journal. The blue 65 day simple moving average shows up on their charts in every publication. The red 29 day simple moving average is something I was taught by a floor trader in Chicago. The green 5 day simple moving average is something the swing and day traders pay close attention! Now, all we have to do is watch these 3 simple moving averages along with volume and candlesticks. This should keep things very simple for those just now starting to trade.
I'm sure if you've looked at the DeadBeatChart you will notice the 29 and 65 day ma's have converged along with the closing price of a long white candle. I've added the link to this chart on the sidebar. This chart led me to exit a 3 day swing trade to the upside with only 2 minutes left till the closing bell today!
Thanks for stopping by to see what the RedDirtTrader has been up to.
Sunday, January 11, 2009
Let's Start this week off on the RIGHT FOOT
8:33 PM central time and the moose has yet to update. Maybe his program is as undecided as the 34 day trading band that I see on the daily chart. Three weeks ago we started to see the stochRSI begin to tell us that a correction was about to occur. The stochastic oscillator showed the TLT to be very overbought technically about the same time. The ADX tells us the trend has began to weaken. The thing about this chart daily chart that I'll be watching is who will win out in this "no trade band" 34 day exponential hi-lo band that we now reside. This is a battle ground area that will lead to a very chopping market. If we take a look at the weekly chart it tells us we could very well test the $110 support of the 10ema or the gap area of $105...........The sharp sell off we've witnessed in the TLT benefited the Muni-Bond ETF's. Some easy money was made for those quick to the draw. For me, Monday will be a very boring day, I think I'll clean out the garage, But with one eye on the charts. I'll look for direction on a couple of trades Tuesday and Wednesday, but nothing for Monday. Be sure to hit the links in this post to study up on some technical indicators that I've applied to the daily MooseCharts.
Thanks for stopping by the RedDirtTrader Blog.
Wednesday, January 7, 2009
New Charts Added to the Sidebar
I've added weekly DecisionMoose charts to the sidebar. Also the chart template has changed for the daily charts. The color scheme is now set to "default" rather than "night". I believe this helps when reading the candles. Makes it much easier to spot black filled candles, hollow reds, etc...
Thanks for stopping by and keep checking back for more changes.
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