BACK IN THE SADDLE
The Larry Williams seminar offerred some good new twists and augmentations to some of the things he has taught in the past. It is possible that I may take trades going forward that I display in here and not be able to disclose all the reasons for doing so. As a reader of the blog you will just have to accept that. He is very protective of his material and rightfully so. He is constantly fighting battles of trying to stop people for illegally distributing what he creates. I cannot for the life of me figure out why people do such things when they steal from others, but it is what it is.
The long entry in the NAZ is still moving along in my direction today so far. You can see where I have the exit target above. Does this mean I think we will stop there? No. It is based on predetermined targets that many of Larry Williams students are familiar with. That target interestingly enough is right into what I consider weekly resistance to be, so that makes me like exiting there that much more. The momentum oscillator is not indicating any waning momentum at this point, so there is no reason to believe we will stop right on a dime if we get into the weekly sell zones. I will look at how things look if and when we get there.
Here is a weekly chart which as always shows a different story entirely. One of the things that was discussed very briefly at the seminar this past weekend, was using weekly setups for daily entries. The following is my take and not what was discussed at the seminar. This is a difficult task to undertake. First you typically have two different looks entirely, and your mind can easily get clowded on the conflicting signals. Second, trading off weekly makes for much larger stops, hence less size. We all want to have max size on with good trades and minimum size with losses don't we?
I used to spend a ton of time analyzing weekly setups, I do not do that as much anymore for the very reason I just stated. When I look at the weekly setups I look at them less for chart patterns and more from a fundamental perspective. This may or may not give me an advantage in finding larger moves. I do not track it to see, but it gives me a comfort zone mentally to know that I am playing in the direction that things from a larger persective "should move." Let's face it life is a judgement call and so is trading. Maybe I will have a change of heart at some point in the future on this, but for now that is how I do it.
As it relates to what we have at hand, I think it is prudent to be aware that we have broken weekly uptrends and changed to down. As a result there should be a sell the rally trade, and it should make more than the counter trend buys going on right now when they trigger. I view it as a downwind par 5 that you wait for when playing golf. It is just money out there waiting to be earned.
Too bad it is not quite that easy but you get the drift.