Blue Bar High!

9/3/2010

Today the TF hit our upper target at 639.00. Also today the TF gapped up on the open but notice how the blue bars told us that the move up was most likely over on the 3 minute and to look for a correction. This is a great tool in real-time to know to continue to trade long or to step back and wait because the market is most likely at a short term top.

The blue bars are relative to the time frame meaning; a 3 minute blue bar high could be the high for the next 2-5 hours a 10 minute blue bar high could be the high for 1-2 days and a 60 minute blue bar high could be the high for 2-3 weeks.

Because we are day trading we want bigger, medium and short term odds. With day trading you can be right on the direction and still lose money if your timing is off even by 1-2 minutes. This is why it is important to have tools to give you odds in real time.

Have a great weekend,

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