TSBTV#8 - Play the First Break
Posted on: January 22, 2009
Anytime short-term congestion areas or consolidations start to form, my first inclination is to watch for a move in the direction which preceded it. So right now, that would be a continued slide given that we sold off from the January highs and have entered into several days of indecision.
However, the wild card right now is that the indexes are attempting to respect important support levels here. That opens the door to an upside reversal out of these consolidation areas, so we’ve gotta be on guard for a big move either way. If support is broken solidly, it’s down elevator. If this market catches a bid, the squeeze is on and well worth playing.
So here in Episode 8, I run through a few potential scenarios and one way you can guarantee yourself some action in the next couple of days - if you really want it.
(Be sure to click the full-screen option for best viewing.)
Hope you enjoy the show! Thanks for watching and subscribing, and feel free to post your ideas and comments down below.
Trade like a Bandit!
Jeff White
President, TheStockBandit, Inc.
www.TheStockBandit.com (Premium service)
www.TheStockBandit.net (Trading Blog)
January 23rd, 2009 at 12:42 pm
Hi Jeff,
Don’t know what I did to deserve your video updates! But thanks! I do watch them and they are interesting.
Interesting times were in now, the volitility lately has been unreal and fun to play (though risk management is vital).
Trading like a bandit as well :>).
Best,
Tom Neels
January 23rd, 2009 at 3:38 pm
Hey Tom!
It’s great to see you here, you must have joined the free email list in the past. I’m glad to know you’re enjoying the videos, thank you for the feedback!
You’re right, the volatility really has been extreme for some time now, and I suppose it’s not out of the question for it to linger for a while.
Great to hear you’re navigating these conditions well. Hope to see you back around soon, thanks for the comments!
Jeff
May 2nd, 2009 at 10:30 am
reading a lot candlestick charting and the raves saying they are more visual to spot h/l and trends. I like the regular charts you use any comments?
May 3rd, 2009 at 5:04 pm
Hey dizz,
It really is just a personal preference. I actually watch bar charts on the daily timeframe but candlesticks intraday, so go figure! It’s what you’re used to seeing, and there are strengths to both so I don’t see one as superior to the other. For me, it’s a matter of routine and I’ve spent years eyeing those timeframes with those chart styles, so I just stick with them.
I’d say keep an open mind and go with what suits your eye best. Consistency is more important than trying to decide whether one is better or worse, because in the end they all show the price range and ending value, they simply do it in different ways.
Thanks for stopping by!
Jeff