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Tagline: The Truth Is Hiding Where No One Dares To Look.

I saw the tagline for this movie and it immediately made me think of something that I used to suffer from in trading. Once I was in a trade I was only looking for reasons for the trade to succeed and I "didn't dare to look for the truth".

What this means is that if I'm short I'm looking for market action to support a drop in the market. I would tend to gloss over or look away from signs that the market is going to go up and search out and find the "signs of weakness" in the market.

The Plot
When her son disappears and is believed to be dead, a single mother blames an African-American man from the projects for the kidnapping, creating a racial controversy. An African-American detective (Jackson) and a white newspaper reporter team up to investigate the case, which they discover may be more complicated than they expected.

Main Cast:
Samuel L. Jackson .... Lorenzo Council
Julianne Moore .... Brenda Martin
Edie Falco .... Karen Collucci
Ron Eldard .... Danny Martin
William Forsythe
Aunjanue Ellis
Anthony Mackie
It's more a experience thing I guess. I was getting out of trades as soon as one or more indicators where oversold/bought. I learned that they can stay oversold for a long time and the price wil still drop/rise.
There are basically 2 types of indicators: 1. Oscillators that trade well in chopping Z type markets and 2. Trend following (MAs etc.) which trade well in trending markets.

Picking the indicator is not as important as picking the day type. Working out the probability of what the day type might be and then selecting an appropriate indicator for that day type is (IMHO) the most important aspect to trading.
How would you know what type of day it's going to be?
Originally posted by rverheyen

How would you know what type of day it's going to be?

You never do. You can only work with probabilities and find the probability of a day type being what it might be. You can normally also not "guess" the day type until part of the way into it. Some day types are easier to predict but again these are only probabilities and the day type doesn't have to follow the norm.

Mornings on FOMC anouncements are usually tight Z type trading days through to 14:15 EST.
Days before holidays or between holidays are often Z days - e.g. the day between Thanksgiving and the weekend or before any holiday weekend like yesterday (Friday before Memorial Holiday weekend).
Days following strong trend days are "said" to be high probability Z days. I put "said" in quotes because I have often seen back to back trend days and don't know if this is true because I haven't tested it.

From what I've seen (again this is untested so far), days with large opening gaps are often Z days. This is a useful measure of day type because you can guess the day type before the market opens in this case.

Hope this helps.