Thursday, August 15, 2013

Russell2000 - Keeping it simple



As you can tell from my  uncluttered charts I like to keep things simple which I do believe is one of the keys in analyzing and trading any market successfully. Above is  2 hour chart of the Russell2000 index and as you can see there is a head and shoulders pattern which has formed over the last 3 weeks. My plan was to short this market on a move below the neckline but with today's gap down the risk was too high. I waited for a rally which never came as today's open was the high of the day.  Hey, that's trading!  The downside target for this head and shoulders pattern is about 1021 which means we should expect a little bit more selling in the next few days.

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