“Those who have knowledge don’t predict. Those who predict don’t have knowledge.” Lao Tzu, Chinese philosopher, 6th century BC

PAYPAL

Wednesday, 14 August 2013

14 Aug 2013

There seems to be a war going on in these prices and the imaginary line is at the doorsteps.  The bears are hanging in there and trying to break the 200ma on the 60min chart.  Once that is broken a substantial move to the downside should be witnessed.  It is not to say we won't move up, but I think the bulls will need all the help they can get.  The head and shoulder pattern talked about last week is still very much alive and it favours the bearish camp.  With our indicators pointing in the same direction odds do favour lower lows.  The intra-day pricing has been good to us and have shown how following indicators is much much better than trying to outsmart the market by guessing. 

An intra day position into the close can be kept only if our trends align with our trade, meaning that shorting when the trends are both down and long when both trends are up. This is the only time I would keep an intra day trade for the following day.

Main-Trend: DOWN
Short-Term: DOWN

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