When did I enter long trades? At the beginning of January when the market stalled and headed south… This put me off enough to basically stay out of the market till the end of Feb when again I decided to put on only long trades! Am I completely nuts or what?
There’s another exercise I’m engaged in at the moment which proves beyond any doubt that making long trades in a falling market is beyond retarded 🙂
The other interesting thing from the chart above is that I’ve marked the peaks and troughs of these trends which all have pretty clear morning and evening star characteristics. I know these aren’t EXACTLY 100% matching the criteria but they’re close enough to provide a warning!
This chart is one day out (Friday closed slightly lower) so if on Monday we see a BIG up day like on the 1st Feb we could be on the up again. Maybe the index needs to get back down to 5700 or lower before everyone returns thinking there are bargains to be had.
Suffice it to say I’m going to WAIT for some confirmation before doing anything.
If someone puts a gun to my head now and makes me place a trade I’ll be going SHORT!!! (I may be learning!)