Thursday, February 08, 2007

Trust your Signal

Sling Long at resistance

HSI down 300 give or take a few points, so despite the run-up in the US markets yesterday evening, this contract has a clear downward bias to it and any longs are countertrend.

The open of the afternoon session, which is the only HSI session I'm trading due to the timezone I'm living in, saw a 70 point gap nearly filled on the first wave of selling. I took a first long (not seen on the chart at 436 and was stopped +6, as HSI ran into resistance at 455)

The next trade was based on that sling I marked above.
(I just got reminded that not everyone was in Woodie's CCI room learning the patterns of the CCI -or any oscillator, as they all show similiar patterns. So what's a sling?
On the subwindow you see a standard CCI 20 -red, blue line and a faster CCI 6 -called Turbo CCI. Now if the TCCI goes down to -100 and the standard CCI remains around the zeroline and then both turn up again, it's called a Sling and it gives you a Long signal. It needs to be confirmed with something else though, as such a Sling might as well turn down again. But in a trend a sling is a very powerful trend continuation signal, telling you that the correction might be over)

Long 454
Exit into the trailed stop 484 for a +30 early morning trade

Writing this another sling formed worth over 100 points and a third for another 50 points. I missed both unfortunatly, but it gives you an idea why I like trading this contract. It shows follow-through, something not seen so often anymore on a lot of other contracts I watch.

No comments: