Historical high areas here and the previous Big Picture post advocated trading the chaos four lines (affectionately aka 'chaos hounds'), in particular the white line - purple cross overs, very simply buy the cross-over, and reverse and sell-short the cross under. There could be losses with the approach because each reversal can cost 20-30 points can start adding up if it "takes too many cross-overs" But the beauty of it is that when it stops fluctuating, there would be hundreds of points moves
In the previous post the white line had crossed under around SP ES 2075, while now, at the end of the trading week it has crossed back up though not by much (see below the white - 161052 and purple - 160623) with the SP ES at 2097 One can either continue holding the Short a bit more because the white line barely over the purple or gain an early entry Long A stop and reversal could be taken at something like 2110 the important thing is that the white remain crossed over the purple Watch for the white crossing back down under the purple by end of Monday June 22, and if that happens there is no need to exit the current short
In the previous post the white line had crossed under around SP ES 2075, while now, at the end of the trading week it has crossed back up though not by much (see below the white - 161052 and purple - 160623) with the SP ES at 2097 One can either continue holding the Short a bit more because the white line barely over the purple or gain an early entry Long A stop and reversal could be taken at something like 2110 the important thing is that the white remain crossed over the purple Watch for the white crossing back down under the purple by end of Monday June 22, and if that happens there is no need to exit the current short
No comments:
Post a Comment