Flexibility
To succeed as a daytrader you have to play what you are dealt. Sometimes this
means being flexible, and reversing from your normal mode of attack when an
indicator fails.
11:34:26
Index Alert
Followers of the methodology of Kevin Haggerty are familiar with volatility
bands. Currently the Nasdaq 100 (NDX.X)
appears to be reversing off the 1.28 band at 1174, and the S&P 500 (SPX.X)
is doing the same off the 1.0 band at 1012. Intraday traders can use these
standard deviations to spot short-term reversals or support. If you would like
to learn more about incorporating volatility bands in your trading, click
here for Kevin’s lesson on the subject.
Normally, there is a 65% probability of the price being
contained in the 1.0 band, and an 80% probability of staying within the 1.28 VB.
However, both fail and the bounce turns into intraday breakdowns below triple
bottoms.
Traders using Spiders, QQQ’s, futures or e-minis could have
profited from the failure. Learn to be flexible and you can pull profits out of
any market, any day.
Until tomorrow,
Duke