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TFC Commodity Trading Forum

Re: Corn Market: Take a short position

"my trading method would all ready have a student prepared in either case."

Reply]
Like I mentioned in another post, this is really just a big game of "If this happens, then do that", so one really does need to be prepared to trade in both directions based on the price action in relation to the current level of support/resistance.

My favorite example is when a price bar opens below the upper bollinger band crosses over it and closes above. There are 3 major possibilities that can occur next. The next bar can open right on the bollinger band, which is a sign the price will continue up. Then it can open above the bollinger band, which is a sign of an impending correction. And last, the next bar can open below the bollinger band which is also a sign the market wants to correct.

since we cannot predict which set up will form on the next bar, we have to be prepared to make more than one play, for holding our long, to exiting, to even being ready to short the market if the gap between the new bar's open is really huge.

I don't believe for a second anyone can predict whats going to happen. Those who have runs of success doing that, also have runs of failure. This means it's just a random crap shoot.