Blue bar highs and lows.

May 13th, 2011

The last week the market has been great for day trading. We hope you have caught some nice waves this week.

This is our NQ 3 minute chart. The blue bars did a great job of giving us high odd reversal areas. Once we get a blue bar we trail the stop to that bar and let the market take us out of the trade.

On the left side of the chart where the first set of blue bars came in we did not get enough of a correction off the blue bars to re-enter short. This means that we are not interested in shorting the next wave. You can see that rule served us well as the breakdown was a fake out and the NQ rallied 34 points.

Visual colors on the chart are almost standard now and they are very important.

Would you go short when our bars are green?

Would you go long when our bars are red?

Would you hold the trade when the blue bars print?

Sometimes the most simple rules are the ones with the most value...

Happy Trading,

www.eMiniSchool.com