AMEX:SPY SPDR S&P 500 ETF
Tim I follow the long term charts to look for major trend changes. Personally I usually trade leveraged 2x, and 3x ETFs using 2 hour and daily charts. I use Fibonacci relationships, some simple patterns, channels, and some candle formations to decide when to get in or out of a trade. I also use some momentum indicators looking for divergences . Can get an idea from some of my postings. I'm always trying to improve so feedback is greatly appreciated.
Thanks. I was hoping to find out what your risk tolerance was on this short position. Do you risk 1%, 2% or 3% of your equity? Do you place your stop far away from the market and start with a small position or do you go with a big position and use a close stop? I guess I'm asking for the risk management aspects of this trade idea. Those are what determine your success in this trade. Just curious. If you add those I can make the chart "suggested". I like you have a divergence and a trend line break, but the risk side is the essential part too.