Life's wisdom - self-discipline
Self-discipline is very important for trading as well as every day life. We need to control ourselves and do what we should do, not what we want to do. But it is hard, because all of us are all flesh ! the market's temptation is very very attractive so that it can always control our fear and greed !
Make a plan and act according to your plan, not your feeling !
Do the correct thing even you are not feeling good ! Finally, the pain will be gone, and it becomes very sweet if you can continue to be self-discipline.
In 2 Timothy 1:7: "For God did not give us a Spirit of fear but of power and love and self-control."
In Galatians 5:22-23: " But the fruit of the Spirit is love, joy, peace, patience, kindness, goodness, faithfulness, gentleness, and self-control. Against such things there is no law."
Hope we all become very self-disciplined in trading, money management, time management, and every thing in the life.
The power of the trap zone
Very powerful run up today ! isn't it ?
That's the underlying meaning of the trap zone, once bears and bulls are trapped in the trap zone, the next step is only to slaughter them.
That's the game of wall street ! Trap bears and then slaughter them ! Trap bulls and then slaughter them! Over and over again ! year after year! the game continues and the rules are the same every day! Day after day!
The nature of the market is a slaughter ! A REAL, CRAZY, and POWERFUL slaughter !
So as a trader, we need to be able to know what the trap-zone is going to trap ! and then take advantage of it !
Here is a review of the recent trap-zone dynamics and my analysis so that you may understand it well. At the same time, my thinking is refreshed as well.
Enjoy ! very very fun !
That's the underlying meaning of the trap zone, once bears and bulls are trapped in the trap zone, the next step is only to slaughter them.
That's the game of wall street ! Trap bears and then slaughter them ! Trap bulls and then slaughter them! Over and over again ! year after year! the game continues and the rules are the same every day! Day after day!
The nature of the market is a slaughter ! A REAL, CRAZY, and POWERFUL slaughter !
So as a trader, we need to be able to know what the trap-zone is going to trap ! and then take advantage of it !
Here is a review of the recent trap-zone dynamics and my analysis so that you may understand it well. At the same time, my thinking is refreshed as well.
- Trap-zone and the money-making zone
- My own stock price development theory
- First trap-zone formed since July 24, 2009
- Trap-zone is surpassed with a nice gap up, and bears are trapped and slaughtered
- My predicted NASDAQ target is realized and then another trap-zone is formed again.
- Dynamics of the trap-zone, very fundamental staff
- Application of the trap-zone for a nice day-trade stock chart set-up
- Trap-zone expanded in the time dimension
- Dynamical expansion of trap-zone again, my conclusion:bulls still have the energy
- Trap-zone expanded to two dimensions, critical time comes finally
Enjoy ! very very fun !
A critical time
A critical time for bulls and bears tomorrow. Actually, an interesting time. Even more fun !
The dynamics of the trap zone in the NASDAQ 30m chart has become very complex and very interesting. Please refer to he chart below. The initial trap zone is expanded in both time and price dimensions. At the same time, a new bearish trap-zone is formed inside it.
Generally speaking, the money-making zone after such trap-zones will be pretty impressive !
Below are several key points to watch:
The dynamics of the trap zone in the NASDAQ 30m chart has become very complex and very interesting. Please refer to he chart below. The initial trap zone is expanded in both time and price dimensions. At the same time, a new bearish trap-zone is formed inside it.
Generally speaking, the money-making zone after such trap-zones will be pretty impressive !
Below are several key points to watch:
- For bulls, 2005 and 2020 is the breakout targets
- For bears, 1960 and 1940 is the breakdown targets
- In the daily chart, a possible DOWN wave has formed as marked in the chart
- Tomorrow morning there should be a UP wave, if it can not surpass 2000, things could be worse for the Bulls.
Tomorrow morning's AIG's earning report, as well as the unemployment rate for July, could stir up or down the market, if there are some surprises.
NGD finally got a nice breakout run today
NGD finally got a nice breakout run today, even though the general market is down today.
Here is the link of a previous analysis.
Pretty nice !
Here is the link of a previous analysis.
Pretty nice !
ALERT: NASDAQ 1980 is broken, the expected DOWN
wave comes now ! This time it will be real, if 1980 can not be gained back by bulls at the close of the day ! More analysis tonight will be posted using my own theory.
Please refer to last night's analysis so that you may know why 1980 is so important !
Please refer to last night's analysis so that you may know why 1980 is so important !
A very possible trend reversal - ETFC
Below is the daily chart of ETFC. Once the blue trap zone is broken out, it could lead to a very possible trend reversal in ETFC.
On the other hand, if the blue trap zone is broken down instead, then the trend reversal will fail !
The market will tell us its choice later. My view is the breakout and the trend reversal in ETFC is very possible, if not 100% sure ! Here is another recent post related to ETFC.
On the other hand, if the blue trap zone is broken down instead, then the trend reversal will fail !
The market will tell us its choice later. My view is the breakout and the trend reversal in ETFC is very possible, if not 100% sure ! Here is another recent post related to ETFC.
Bulls still have the energy
Bulls still have the energy, although they may be tired now.
According to my own theory, the trap zone in the half hourly chart becomes dynamic today. It expands in the time dimension. This is a little worrisome for bulls, but still is just a warning sign for bulls.
Unless the trap zone is broken down, namely 1980 is broken down, I don't see any signs of the expected DOWN wave is coming !
So stay alert, but don't act as a bear too early. Follow the trend is the way to go !
According to my own theory, the trap zone in the half hourly chart becomes dynamic today. It expands in the time dimension. This is a little worrisome for bulls, but still is just a warning sign for bulls.
Unless the trap zone is broken down, namely 1980 is broken down, I don't see any signs of the expected DOWN wave is coming !
So stay alert, but don't act as a bear too early. Follow the trend is the way to go !
The market is still very strong
especially, the financial sector.
When I am writing this post, some financial stocks already POPed:
AIG +60%
CIT +47%
FNM +30%
FRE +30%
ABK +26%
GS, BAC , and C are all in green !
I really don't know what happened to them, what caused them to climb UP so much. But I do know, based on the performance of the financial sector, the market is still pretty bullish !
I also bought in some ETFC today at 1.44 and 1.45 for a short term play ! If the market continue to be bullish, especially the financial sector, a POP is due for ETFC !
When I am writing this post, some financial stocks already POPed:
AIG +60%
CIT +47%
FNM +30%
FRE +30%
ABK +26%
GS, BAC , and C are all in green !
I really don't know what happened to them, what caused them to climb UP so much. But I do know, based on the performance of the financial sector, the market is still pretty bullish !
I also bought in some ETFC today at 1.44 and 1.45 for a short term play ! If the market continue to be bullish, especially the financial sector, a POP is due for ETFC !
Never guess the top or bottom
Just follow the trend ! That's the way to trade, if you want to be successful in this brutal world !
Here is a previous post on how to follow the trend ! Hope it can be helpful when we read it again !
I made a mistake to set up the target as 1995 for this UP wave. I will never set up a target for a UP wave and a DOWN wave. I will only follow the trend and wait the market to tell me "here is the top" and "here is the bottom".
Always remember that when you are predicting a target, you are gambling, but not trading! Think about it, the real peak point of both top and bottom will be, and have always been, created in less than one second, with just one trade. Millions of traders are trying to catch the magic point, but at most only one, most time none, will be correct. The nature of this magic point is random and emotional! No body knows how panic or how optimistic the people will be at that moment! The chance is less than the chance you may hit the jackpot lottery! Isn't it a gambling ?
So stop predict the top and bottom ! Just follow the trend, and the market will tell you as the top and bottom comes !
According to my own theory, the UP trend will end with a bearish pivotal point. So far, in the daily chart, no such bearish pivotal point is formed. So the UP trend will continue unless the
bearish pivotal point is formed.
In addition, another bullish trap zone is formed again, which indicates the UP trend is still OK. As I mentioned before, a trend reversal can happen only if the transition of a trap zone is completed. So far, the chart doesn't tell us this.
Here is a previous post on how to follow the trend ! Hope it can be helpful when we read it again !
I made a mistake to set up the target as 1995 for this UP wave. I will never set up a target for a UP wave and a DOWN wave. I will only follow the trend and wait the market to tell me "here is the top" and "here is the bottom".
Always remember that when you are predicting a target, you are gambling, but not trading! Think about it, the real peak point of both top and bottom will be, and have always been, created in less than one second, with just one trade. Millions of traders are trying to catch the magic point, but at most only one, most time none, will be correct. The nature of this magic point is random and emotional! No body knows how panic or how optimistic the people will be at that moment! The chance is less than the chance you may hit the jackpot lottery! Isn't it a gambling ?
So stop predict the top and bottom ! Just follow the trend, and the market will tell you as the top and bottom comes !
According to my own theory, the UP trend will end with a bearish pivotal point. So far, in the daily chart, no such bearish pivotal point is formed. So the UP trend will continue unless the
bearish pivotal point is formed.
In addition, another bullish trap zone is formed again, which indicates the UP trend is still OK. As I mentioned before, a trend reversal can happen only if the transition of a trap zone is completed. So far, the chart doesn't tell us this.
A nice day-trade chart pattern set up example
The pattern break-out leads to a ~48% up in less than a day ! Very powerful !
Some key points that need to be highlighted:
Some key points that need to be highlighted:
- a bullish trap zone
- bullish pivotal point
- three waves
- MACD above zero
- moving averages are in a bullish set-up pattern
- an up pole with a round bottom
Pivotal point
pivotal point is very important because it is usually the start and end point of both the trap-zone and the money-making zone.
I classify pivotal point as three kinds:
See the chart below for more details
I classify pivotal point as three kinds:
- bullish pivotal point
- bearish pivotal point
- trap pivotal point
See the chart below for more details
Dynamics of the trap-zone
The trap-zone can be classified as
- Bullish trap-zone
- Bearish trap-zone
- price dimension
- time dimension
- expand in price dimension
- expand in time dimension
- expand in both price dimension and time dimension
- transition from a bullish trap-zone to a bearish trap-zone
- transition from a bearish trap-zone to a bullish trap-zone
- the birth from a money-making zone
- life activities such as dynamics and transition
- the end of its life with a new money-making zone formed
The shaping stage of the expected DOWN trend has
been destroyed this morning by the GAP UP ! here is the link for the DOWN trend shaping stage !
Very possible, the market will make a new higher high than 2009. SO keep watching 2009, which is very important !
VRTU has broken out the 10 benchmark. Here is the latest prediction on VRTU.
This is a good opportunity to learn how the DOWN trend is formed finally in the end of the UP wave. It is also a golden opportunity to learn the dynamics of no-trap zones. I will summarize these together later so that we can use it for our future trading. It is really fun and good time to apply my own price development theory to do the market analysis dynamically. Actually, very dynamic ! That's the nature of the market !
The dynamics of the trap-zone can be found here.
Very possible, the market will make a new higher high than 2009. SO keep watching 2009, which is very important !
VRTU has broken out the 10 benchmark. Here is the latest prediction on VRTU.
This is a good opportunity to learn how the DOWN trend is formed finally in the end of the UP wave. It is also a golden opportunity to learn the dynamics of no-trap zones. I will summarize these together later so that we can use it for our future trading. It is really fun and good time to apply my own price development theory to do the market analysis dynamically. Actually, very dynamic ! That's the nature of the market !
The dynamics of the trap-zone can be found here.
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