Posted by: joetradingplace | May 4, 2012

Daily Analysis (Indices) 04-05

Ftse

Price has been ridding the blue TL slowly, buyers were not showing much progress, price then spiked up, hitting some stop losses, when it came back below the major R, we knew that the market was ready to tumble, as long as price stayed below the minor R, we were bearish. I have been trading this setup for a few years and was chuffed to see that someone else trades the same pettern…check out http://www.nobrainertrades.com , check clearance thrust.

I love trading the pattern, because it works more often than not…most traders are trapped when on the clearance thrust, stop losses are hit and it fuels the market in the opposite direction to the thrust, check that pattern and you can see it occurring most of the time when the trend is about to change direction. I will post a couple of charts with the clearance thrust…i stole this term from Steve…i use to call it stop hunt…but i think clearance thrust sound better.

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