On Moving Stops
Moving stops on your trades is not necessarily problematic as long as you have a solid reason with high probability and most importantly your entry is realistic. On Tuesday, we raised the stop on our short DOW30 trade for Premium Insights subscribers to 25960 from 25870 based on several proprietary metrics suggesting equity indices will be forced back down. One of these metrics was the Dow Transportation 20 index (see chart below), which failed to confirm the upmove in the DOW Industrials 30. Entering the short DOW30 on Monday may have been poor timing, but the decision to raise the stop the following day was based on 3 objective metrics—one of which was the TRAN20 “misconfirmation”. Understanding intermarket dynamics is key, but applying it to technicals and trading is the more crucial and challenging task. What do we do next with the existing short? Close here? Go the other way? Enter a risk-equivalent trade in FX. Stay tuned.
Fear Crushed by Retail Sales & Round 1
by Adam Button | Jan 16, 2020 18:31
Sell the Fact or Sell the Economy?
by Adam Button | Jan 15, 2020 12:42
Markets Hesitant as US Makes Nice
by Adam Button | Jan 14, 2020 12:52
Pound Sags on Rate Cut Talk
by Adam Button | Jan 13, 2020 11:57
نراكم في مؤتمر دبي بعد أسبوعين
by Ashraf Laidi | Jan 10, 2020 14:18