Keep the faith and follow the system

Today, our trading system was shouting "sell, Sell, SELL". These are the sell signals:

• 30min CCI bearish since late Friday
• CCI crossed under CCIMA at today's opening down move
• Striker was heading down

The only thing that was bullish was 5min momentum. But the signal line is clearly in the negative at -20.

The system recommended three short entries- stochastics crossed down three times and all of them were profitable short entries.

In order to follow the system successfully,

• Follow the 30min CCI direction and enter trade in this direction (Shortsale for today)
• Use 5min stochastics for entries
• NEVER GUESS TOPs AND BOTTOMs.
• NEVER ASSUME A REVERSAL UNTIL THE SYSTEM SAY SO
• Forget the market gurus' predictions and other noises. The system will capture the market's actual moves.

Revisiting previous analysis for Dow Day trading

Dow traded as expected in the pre-market analysis last Friday. There was a small decline followed by a steady rally.

The momentum weakened as the day progress and it lead to today's fall.

Possible trend change for DOW

Well, yesterday's shortsale day signalled a possible trend change. Dow traded higher and shortsale came in late and it was a higher shortsale. That means the decline did not go much lower than previous day's high (Decline from 11200 to 11164). Then it turned back upward to the close.

Today is BUY day.

Trend change signal will be confirmed if the prices trend higher.Expected play is to go higher in the first hour then followed by a small decline, not below 11160. From there, a strong rally should take place. If not, the major down trend is stil in place.

This is what Taylor trading technique says about today's possible market move.