October 12, '04. Breakfast Anatomy
It is true, as a general rule, that gaps in the futures indices at the opening tend to close quickly. But the first move away from the Opening Range can often be telling. Randolph Newman, infamous pit trader from the old New Orleans cotton exchange, and my early mentor as a rookie trader, had a saying, "If it starts up fast, it seldom lasts." Of course, Randy had a lot of sayings. But this one played right into another rule we use at Valhalla to determine an early trade trigger. And today, that trade trigger was to short the Russell (symbol MR) at the point labeled "c" on the chart above. Take the course, Pivots, Patterns and Self Recognition and learn the other Breakfast Setups our menu has to offer. Come to daytradingmethods.com and sign up there.