A very easy, and simple way to determine the trend for the day

Back when I ran a room on TCNet "Kauai Dave Trendtraders" i learned many things from the folks who ran the other rooms there. One guy ran a room based on a series of EMAs he called the rainbow. In this chart I have picked EMAs that relate to fib numbers. The idea is very simple.... If we are above the rainbow you should be long, if price is below the rainbow you should be short. Notice how when we cross the last EMA price accelerates... The setup this morning looks similar to how it looked yesterday... Europe took us higher and we reached higher levels, what one might call overbought in intraday timeframes...

Then when the Market opened in the US the powers that be.. Goldman Sachs, JP Morgan etc sold almost all day long. I make no predictions, I'm not one of the gangleaders in "paper" land (Paper being a term to describe the Wall Street insider traders) but it will be interesting to see if they do the same thing today.

In my opinion they usually do whatever will take money away from the most people. Two days ago they bought low, and yesterday they sold while the amateur traders bought all day... Then when they had sold everything they planned to sell they let the Amatures take the market higher late in the day, and so the cycle continues and the house never loses in the biggest gambling casino in the world.


however we are not at the levels we were at yesterday! So they could take us higher today... I don't have a crystal ball, I don't try and predict the future, I don't need to be right... I just look for patterns and share what I see.
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