Comments on: Understanding and Using Capitulation for Reversal Daytrades http://tradermike.net/2007/04/understanding_and_using_capitulation_for_reversal_daytrades/ Trading, Stocks, Stock Market, Money Mangement & Risk Management Thu, 20 Nov 2008 23:09:34 +0000 http://wordpress.org/?v=2.6.3 By: LP http://tradermike.net/2007/04/understanding_and_using_capitulation_for_reversal_daytrades/#comment-7327 LP Tue, 03 Apr 2007 12:54:17 +0000 http://tradermike.net/2007/04/understanding_and_using_capitulation_for_reversal_daytrades/#comment-7327 Michelle, ICE displayed this pattern yesterday but I was too late for the earlier move. I then got scared later on because the markets were not too kind. My risk at 11:25 was about a dollar with a nice loose stop all the way to the bottom. After 11:25 the risk was too much for a loose stop so I passed. Thank you once again as this is a post I will be printing out and coming back to over and over again. BTW, your previous post about time was pretty nice also. Thanks, LP Michelle,

ICE displayed this pattern yesterday but I was too late for the earlier move. I then got scared later on because the markets were not too kind. My risk at 11:25 was about a dollar with a nice loose stop all the way to the bottom. After 11:25 the risk was too much for a loose stop so I passed. Thank you once again as this is a post I will be printing out and coming back to over and over again. BTW, your previous post about time was pretty nice also.

Thanks,
LP

]]> By: Michelle B http://tradermike.net/2007/04/understanding_and_using_capitulation_for_reversal_daytrades/#comment-7320 Michelle B Tue, 03 Apr 2007 10:35:25 +0000 http://tradermike.net/2007/04/understanding_and_using_capitulation_for_reversal_daytrades/#comment-7320 LP, I am very pleased that you found my post helpful. You made an excellent point about how bear flags are not the point of entry for a capitulation move. Focus on learning the difference between bear flags and capitulation bottoms---basing/consolidations are not equal in meaning. LP, I am very pleased that you found my post helpful. You made an excellent point about how bear flags are not the point of entry for a capitulation move. Focus on learning the difference between bear flags and capitulation bottoms—basing/consolidations are not equal in meaning.

]]> By: LP http://tradermike.net/2007/04/understanding_and_using_capitulation_for_reversal_daytrades/#comment-7300 LP Mon, 02 Apr 2007 18:58:45 +0000 http://tradermike.net/2007/04/understanding_and_using_capitulation_for_reversal_daytrades/#comment-7300 Michelle, Nice and Nice. Love the details. Jamie has been trading a few of these as well. I have Learned so much from your two post on this subject as well as many of Jamie's short post. I will have to link this post to my blog so that people will understand that I am not trying to catch a falling knife but rather identifying possible opportunities of low risk. Thank you so much for explaining how to enter these trades. I was able to indentify the trades like (ICE today) but I could not figure out, how to enter in on low risk rather than a bear flag. Thank you, thank you, thank you LP Michelle,

Nice and Nice. Love the details. Jamie has been trading a few of these as well. I have Learned so much from your two post on this subject as well as many of Jamie’s short post. I will have to link this post to my blog so that people will understand that I am not trying to catch a falling knife but rather identifying possible opportunities of low risk. Thank you so much for explaining how to enter these trades. I was able to indentify the trades like (ICE today) but I could not figure out, how to enter in on low risk rather than a bear flag.

Thank you, thank you, thank you

LP

]]> By: Michelle B http://tradermike.net/2007/04/understanding_and_using_capitulation_for_reversal_daytrades/#comment-7296 Michelle B Mon, 02 Apr 2007 12:27:08 +0000 http://tradermike.net/2007/04/understanding_and_using_capitulation_for_reversal_daytrades/#comment-7296 Pradeep Bonde, thanks for the resources. Pradeep Bonde, thanks for the resources.

]]> By: Pradeep Bonde http://tradermike.net/2007/04/understanding_and_using_capitulation_for_reversal_daytrades/#comment-7295 Pradeep Bonde Mon, 02 Apr 2007 12:12:14 +0000 http://tradermike.net/2007/04/understanding_and_using_capitulation_for_reversal_daytrades/#comment-7295 The best way to identify capitulation or seller exhaustion zone is by using some of the techniques developed by Tom DeMark. DeMark indicators, TD Sequential and TD Combo identify trend-exhaustion zones. That way one can scan objectively for them and enter anti trend in anticipation. Tom DeMark books The New Science of Technical Analysis , New Market Timing Techniques and DeMark on Day Trading Options offer detailed logic behind the thinking and set up. The best way to identify capitulation or seller exhaustion zone is by using some of the techniques developed by Tom DeMark. DeMark indicators, TD Sequential and TD Combo identify trend-exhaustion zones. That way one can scan objectively for them and enter anti trend in anticipation.

Tom DeMark books The New Science of Technical Analysis , New Market Timing Techniques and DeMark on Day Trading Options offer detailed logic behind the thinking and set up.

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