Wednesday, September 8, 2010

Short Signal Triggered

After falling out of the steep up trend channel since 08/31 and failing to make new highs after two days, a short term swing short signal is triggered. Is the market overwhelmingly bearish? No. But I'd say that odds of further decline from here is 50/50 or better. The reason I like to short here is because of the high risk/reward ratio of the trade. Stop loss should be set to 9/3 highs. Therefore, as long as you control your risk and cut loss when you are proven wrong, potential loss is very limited.



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