| Posted in PREPARING FOR THE MARKET DAY | Posted on
enters a position just before bar expansion and exits as the crowd loses control. Careful planning
guides the enterprise through every phase and plans an escape route just in case things go sour.
Trade time, price, and safety. Profits will quickly follow.
Multiples of 10 measure Seibel’s progress as it pushes toward 100. These classic round numbers elicit common S/R
behavior with price breaking through resistance but then pulling back to test new support. Also note how price bars
expand sharply as they pierce the horizontal barriers for the first time.
Accurate forecasting requires the ability to see price movement in more than one dimension.
Investors and institutions can often accomplish this task with a single price chart. Swing traders
need more information and must watch the mar kets using 3D charting techniques. Identify three
time frames that correspond to the chosen holding period. Find one segment above and one below
the position focus. For example, many intraday traders rely on 1-minute, 5-minute, and 60-minute
charts while many position traders manipulate 60-minute, daily, and weekly combinations.
Cross-verification finds promising setups at key intersections of price and time. Notice how chart elements converge to
produce an excellent Broadvision short sale: 1. Price falls through support of the prior high at 65. 2. The same bar
breaks the 2-month trendline. 3. The same bar also breaks the 50-day moving average. 4. Price gaps below support, the
trendline and the moving average. 5. The bottom Bollinger Band expands to suggest lower prices ahead.
Not sure how long to maintain a position? Most swing traders should choose a specific holding
period that reflects their lifestyle and not change it until thoughtful planning presents an alternate
strategy. The rational mind will turn poorly defined time frames into major losses. Trades become
investments and ex-traders become humbled investors. As strategies evolve, slowly experiment
with different time frames. During these phases, prepare to answer the time question clearly before
each trade execution. Write it down and stick to it or success will not come easily.
Not sure how long to maintain a position? Most swing traders should choose a specific holding
period that reflects their lifestyle and not change it until thoughtful planning presents an alternate
strategy. The rational mind will turn poorly defined time frames into major losses. Trades become
investments and ex-traders become humbled investors. As strategies evolve, slowly experiment
with different time frames. During these phases, prepare to answer the time question clearly before
each trade execution. Write it down and stick to it or success will not come easily.
