I'm watching for signs of a potential double top as price approaches July highs. The NDX has formed a bearish rising wedge pattern. Furthermore, the ADX line (momentum indicator) has been declining throughout most of the bounce from the August lows. It is just now starting to rise, post FED. A sleepy ADX on such a recovery could be a sign that momentum has been lost.
Looking at the NASDAQ comp, I would like to see it hold Thursday's lows as support, otherwise it opens the door for corrective action and the loss of the Fed day gains.
2 comments:
Hello.
I have been reading your blog with interest. It is very good. Wonder if I could ask a quick question : Since you trade using 15min bars, does it make it more likely that you are entering a trade around lunch time ? Or do you have a criteria to not trade during the lunchtime period.
Thanks
I try to enter trades mid-morning and mid-afternoon. However, if I get an alert for a pivot point break during lunch time, I will take the trade if it sets up a low risk dummy entry.
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