We’ve all heard that a profitable stock trading system has rules and those rules are followed without question. That usually means risking a certain amount of capital, or cutting losses when XYZ happens.
I’m going to reveal to you an entire set of rules that you don’t even realize exist. They may be little thought clouds in the back of your mind. Maybe something caught your attention during a trade. You wondered about it, but never gave it much thought after the initial suspicion. The answer may be found in this series of posts.
Rule #1: Excessive Volume Will End A Move
Prove this to yourself by pulling up any chart: stock, index, or ETF. Here’s a chart of AKAM. The excessive volume bars are readily visible. Click the chart for more comments about the areas of excessive volume.
Pull up a chart of your choice and draw a few horizontal lines across the volume spikes. You’ll soon find the levels that are significant. Watch for those levels in the future and you may have a hint that the move is nearing an end.
Similar Stock Trading System Posts:
- How To Incorporate S & R In A Trading System One component of a robust trading system is knowing how...
