When I go through my charts every day, there are a lot of things that I look for. Price is the most important of course, but momentum, moving averages, relative strength and price patterns are just a few of the other details that I try to focus on. The goal with all of this is to find risk/reward opportunities where the reward potential is exponentially greater than the risk involved.
This is why the Nasdaq Composite is such an easy short. Not because
trading is easy, but because the risk here is so well-defined, and the
reward possibilities are substantially greater. This is all that really
matters. Look at the new highs in February and into early March.
Momentum was nowhere near confirming them and now momentum is making
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