Blue bar high and low

7/14/2010

This is a 3 minute chart of the NQ from today. We had a blue bar breakout to the long side and then we had blue bars at the high of the day telling us to look to exit any longs and to not re-enter long. From the 1862 high we had a minor counter trend short signal. This is counter trend so we would use a more aggressive stop and not look for a home run out of the trade.

Since we are getting up to the 2nd high targets on the bigger time frame the minor short tunred out to be a 20.00 point dive. The NQ did not close back above the moving average and it fell down and then we have blue bars at the low telling us it was time to exit any short trades and not re-enter short.

All indicators are tools. There is no magic they are tools to help us in real time to gain odds of where we should enter and where we should exit. Will it be right every signal time to the exact point? No, we are getting odds on the time frames and then we trade within those odds.

We have made our indicators for the patterns we trade. Without knowing the patterns and educating yourself it is just another indicator. This is why we use our indicator for our trading set up's. We are going for bigger moves in the market not just scalping 1 point here and there. That is risky in our opinion. But just like everything else everyone has their own opinions especially with the markets.

Looking at the chart would this help in knowing where the trend might end for that specific time frame?

Market update:

We had the 1082 as our 1st upper target from the 1002 low. We did break higher and it is important to know that upper targets are not short entries they are levels we want to look at as possible areas the trend could terminate. The 10 minute uptrend has not been broken yet but we are getting to a level where that could change.

Happy Trading,

www.eMiniSchool.com