as i continue to believe that the risks are substantial for a large sell-off in equities, i will be going thru the active trades, particularly the longs, looking to remove some that might have hit ideal stop levels or maybe have just stalled out and no longer look very compelling from a technical stand-point.  this will allow me to streamline the active trades, many of which are offering objective new entries or add-ons to existing positions.  in addition to the trade ideas listed in the Trade Setups category, the Active Trades section usually contains trades that offer objective entries such as:

  • longs that have pulled back to re-test their recent breakout level, such as a bullish falling wedge, former horizontal resistance (now support), or maybe a key moving average that it has acted as support or resistance in past (assuming that the charts confirm a likely bounce and not additional downside).
  • shorts that have pushed back to re-test a recent breakdown level or maybe a short trade that has hit one of the early targets, bounced and consolidated to reset the near-term oversold conditions, and is now poised to break that support level (e.g.- T1) before falling to the next target (T2, T3, etc.. again, assuming the charts confirm).

these are just a few examples of how to most efficiently make use of the trade ideas posted here.  because of the sheer number of trades continually added to the site, i can not update or highlight all of them, at least not in a timely manner.  be selective and choose only the patterns that fit your own trading style and comfort level.  replicate or modify those charts on your own charting program, and make sure to set price alerts to immediately inform you of entry or exit opportunities.  i also favor using standing (GTC) limit orders to exit you positions at your preferred target level.  these orders can always be modified if your overall take on the market or that particular trade changes.  for example, i will often extend or reduce a target on a trade if the technicals and recent price action convince me that the trade might fall short of, or exceed, my original preferred target.  discipline is important in trading but being flexible and able to quickly adapt to changing market conditions is paramount IMO.