Saturday, January 3, 2009

Quick review of ESH09 commented chart below.

It was probably not the best idea to publish a commented chart on Jan 1st simply because not only markets had been closed for about 36 hours, but there are also portfolio adjustments on the new year and volumes are still relatively low.
The result hence is that the ~910 target was hit way too quickly.

We have noticed in the past few months that volatility works as a "time compressor". For those who wish to keep the trading frequency and style relatively unchanged, time frames should be multiplied by 2 or 3. I however recommend to adapt within reason and go with the flow. Trading is faster but the reading technique remains largely the same.