Tuesday, May 25, 2010
Hammer
Take a look at the hammer candlestick formation made today. This should set up for a bounce. I'm sure I'll be long the S&P500 and looking for a PROFIT! With the 29 day and 65 day about to cross negative, the 29 day ma will be a place to take some chips off the table. Opening stoploss will be the low of the hammer. Hope that support doesn't get broken and take me out of this trade. I will watch the open on Wednesday and if we gap up I'll wait at least 15 minutes, maybe more before entering the trade. Let me explain, if the low of the open gets taken out within fifteen minutes of that open then I'll be patient and look for the gap to get filled. I'll be watching support levels such as the pivot points and my intraday moving averages. It's important to be patient. If the market opens below the high of the hammer I'll probably place a buy stop just above the hammer and place my initial stop just below the low of the hammer.
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