For 1.5 months, I have been enjoying great success with trades that combine elements of SR with BM entry criteria. Eg, I only take SR Calls when BM is trending up, and I only take BM calls when the stock has just crossed a resistance level.
In the 24 Sept Audio update, Mirriam talked about taking stocks that failed to push through their all time high when the BM rebounds downwards. I've been capturing a lot of small moves and I hope I can finally capture a big move this time with one of these stocks.
I feel that after these 2 months of looking at charts, I can see patterns more naturally in these charts. The concept of moving averages and highs and lows as support and resistance levels become built into the way I look at a chart. I think it has moved beyond memory into understanding.
I don't mean to say that I understand why it acts as support and resistance. I suspect that technicals like moving averages work only because many people think they work. It becomes a self fulfilling prophecy. But most important is the ability to capitalise on it. Which is to enter after the 1 hour confirmation the day after it crosses the moving average.
I added up my trading profits and subtracted my losses and found that since my blog started, I have made about 100+ %. That is not to say that my account grew by 100%, since each trade is only about 1/4 of my account value.
I'm thinking I have a good chance of winning the July trading competition. Since the competition only counts successful trades, when I add the 90% gain from my first AZO trade (b4 my journal started), my total gains have reached about 240%. I hope to add at least 100% to it before the deadline at the end of Oct. =)
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