Week4(a) 24th Jan 11

So I thought I’d look at what the FTSE is doing in light of the book I finished reading (see Book Review thread) and sure enough Tuesday was an up day, Wednesday was a ‘Bearish Engulfing’ candle – good signal of a strong reversal coming and Thursday everything dropped through the floor Friday saw indecision which may hint that prices will bounce off the support at 5900 but it’s of course not confirmed yet…

Certainly wouldn’t put on any long trades next week until there’s a bounce off the trend line, previous support/resistance or you get some sort of reversal candle pattern

If things keep selling off then it’s time to find shorts instead

Yes, I realise I’ve got way too many momentum indicators on my chart but all they’re doing in this case is backing up what the price action says.

You wouldn’t need all of these to come to the same conclusion.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s