Tuesday, December 27, 2016

Digesting some tips to use with Evolution

Always Zoom out! and check the weekly chart.  The weekly chart will often have some really nice and consistent trending highs and lows, and make some good support lines.  You don't want to go long up against a 3 year resistance, or short with a 3 year support line in my opinion. 

So basically, make sure the weekly price chart agrees with what you think based on the daily chart. 

Also you might be better off ignoring the plays that go against the long term trend, i.e. going long in a trend of lower highs.

Check out this chart going back to 2014.

If you looked much more shorter term, you may have seen DB make a nice bottom and start a bull trend.  But, if you look at this 3 year chart, this is just a normal/random move up to the resistance. 

Also this up move is not very steep.  With options you want steep.  If go with the trend you get better profit per trade. 

Just fyi, if you give some flexibility to the rate hike day, you basically have a sell signal on the daily.  Otherwise the rate hike spike low for DB makes that the most recent pivot point, and it's a low.

No comments:

Post a Comment