AFSI Trade on Dec 27, 2013 11:11 from johnc_BOWS: Tradervue User Stock Trades.

2/8: As you can see here:

, this short was never ready. It needed another candle to open below the MA and never get above before it would have been ready.

Often, the daily chart's 9ema will either be an intraday breakout or failure spot. Like Schrodinger's cat, you don't really know if it's dead until you observe it. Until you get good evidence that the stock will move in either direction, you must consider the fact that it is both a long and a short. And if you don't know, then you don't have an edge and it is therefore a losing trade.

In this case, I should have waited for evidence that it would fail the daily's 9ema. Perhaps if it had stalled at 32.20 or the intraday MAs, it would have been a short. Otherwise, I've actually seen this setup as a decent opportunity for a long.

2/8: I would classify this as a Type 1 because I didn't know better at the time. However, I know better now.

I've noticed that I had better luck shorting stocks that try to break above the MA and then fail to close above it.

. However, since I didn't know better at the time, I thought that when a stock plummets, any kind of pullback to an MA will always fail (i.e. a bear flag). That's not actually how daily bear flags work though.