Uptrend for the next 10 days The market will go up for the next 10 days.
I am using the Heikin Ashi candlesticks as they:
1) show more of a directional movement within candlesticks,
2) they tend to filter out the market noise so you can see the market direction better,
3) it reduces false signals, allowing you to stay in the trade longer, and
4) gives you a smoother appearance making it easier to see trends and reversals.
Typically, I would wait until there are 2 green Heikin Ashi green candlesticks before entering.
I still tend to switch back and forth between Heikin Ashi candlesticks and regular candlesticks since regular candlesticks are what I am familiar with and have been using since I started trading.
I use the MacD, the Stock RSI and the DMI to assist me with the direction of the market.
I am anticipating a bull trend for the next while as the 30 min, 1 hour, 2 hour, 3 hour and 4 hour indicators are already looking bullish. The rest of the time frame indicators should change shortly.
I have a few targets. In the past I have said the market is usually moving about 34 points, but I think it will make a less of a move this time due to the Stock RSI only being slightly lower as it is not starting close to 0.
If you look at some of the past moves, the market moved around 20 points such as from July 1 to July 16, Oct 7 to Oct 17 and Nov. 20 to Dec 6th. As well, if you look at the Stock RSI on the daily charts, it has only declined a little. So even with it turning soon, it only has a little way to go upward.
Typically, I would wait until there are 2 green Heikin Ashi green candlesticks before entering.
I still tend to switch back and forth between Heinkin Ashi candlesticks and regular candlesticks since regular candlesticks is what I was using since I started trading and there are still some benefits I get from regular candlesticks.
The targets I have in place are:
22 point move = 616
1.618 Fibonacci move = 619.35
10 day move = Feb 12
If it hits one of these targets, I am out of my trade.
My stops are:
1) the low of the previous candlestick,
2) 2 red Heikin Ashi candlesticks,
3) a specific dollar amount of a total loss for my trade or
4) a specific dollar amount of the contract.
Happy trading everyone!
