ryeones remarks

  The Dia trade was not such a bad trade. It made a few pennies. But more to the point it was a poor signal. I saw a possible entry to sell made on 3/25/08. The ATR contracted, that is the bar for that day was well below avgerage. The RSI was over bot and we had a nice formation to sell into. What went wrong then? The price action continued to contract. That is the ATR narrows and the avgerage drops. Here we had the previous week an expanding ATR and then it narrows on the decline of the price action. This is not what I wanted to see.

So the triangle got broken on the Dia daily chart. However the previous lows have not been met yet. I had hoped that the kiss back would be bigger. That is, the up trend off of the lows of 03/10/08 would be closer to the back of the up trend that formed the bottom part of the triangle. But even so my work shows a sell signal out of syncronisity. (That