Wednesday, July 8, 2009

Short of the 2 IBL with Confluence



Hi guys,
Here was a really nice trade. I annotated it in pretty good detail so check it out. I entered this one with a limit sell order as there was tons of confluence to give me confidence. I didn't wait to see the sellers coming in.

At levels that I really like, all I really need to see are signs of deceleration, like the divergence I showed above or tons of volume coming into my level showing that supply was present in abundance absorbing demand.

I hope this helps,

MG

2 comments:

  1. Nice write-up. How often do you trade off of the 2IB #s? Do you find they work as levels reliably?

    I've never really used them so don't have the background...

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  2. Thanks Brian,
    I have traded them many times. With confluence, like today, I find them very reliable.

    You can fade them on a swing type of day or trade them as a retracement, like I did today.

    Both types are cool. I love them both when I have supportive reasons to take the trades.

    MG

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