System trades – Jan. 19, 2016

Nat’s ‘system trades’ on Tuesday illustrated one of the issues that still needs to solved: how to trade the price around the “control line.” After the chart is printed, its easy to see that the whipsawing around the “control line” (sort of a sentiment reversal line) was temporary, and the direction for the day was down. It might even have been possible to reach that decision from the decline in the pre-market, after a big ramp overnight on light volume. But the whipsaws were pretty substantial, about 10 points above and below the … Continue reading