Monday Forecast

Lets take a look at the techincal chart for the QQQ.

As you can see there is a bottom that has been hit via the reversal double reverse hammer candles. That tells me that there is a 90%+ chance that there is going to be a bounce back up Monday.

Now lets talk what has been going on with my pics with the triple down. We already exited my lone pic and we now have three calls hanging out there. I tend to exit some of them on Monday and some on Tuesday. I was using my previous system that had a hard time calling absolute bottoms and tops so I was averaging down. But now I have something better which is more accurate and generates fewer signals thoughout the day and also allows for more profit. So lets go over what happened last week and how the signals were faking me out:

I was trading using level 2 stock quotes and several indicators including the RSI, two custom built indicators, and a stocastics indicator. Look at the below chart and note the three fakeouts: 1, 2 and 3:

Usually when the RSI and the other indicators are on the bottom like the bottom two indicators its time to buy. This is what faked me out in instance 1 and instance 2. For trade 1, I moved in with a QQQ call. Then I noticed that things kept dropping, so I double downed and got in at twice the money with the same this time more cheaper price flattened call. Things kept dropping. Then I started to rely on my excellent bottom indicator above those two, Thats the indicator with the red upsidedown hills and the green right side up hills. When they both try to meet each other as in the 3rd attempt, that is a strong bottom indicator. So I TRIPLED down. Yet things STILL kept moving wrong on me. FUCK. Then I noticed something. Look at the below pic...(click below picture for full view):

When the solid line that goes through all the candlesticks are green, buy. When the solid line that goes through all the candlesticks are red, sell. This is further backed up by the blue and red arrows. If the line switches over to green and then there is only a blue upward arrow below it and no red arrow, purchase. If the line switches over to red and there is only a downward red arrow, sell or buy puts.

Now you may notice that there will be fewer buy and sell signals throughout the day, fewer gaffes on my part, and much more money made per trade. I look forward to trying this on Monday. See you then and thanks for reading.

Tradinginsider