SWING TRADING THE RUSSELL 2000 LEVERAGED ETF'S
Note the ascending wedge formation on the Russell 2000 daily chart above. You will notice the cross hairs and how they interact with the support resistance lines on the wedge and the price levels earlier on in 2011. Anything is possible in the financial markets but I don't think the price is going to reach the upper resistance line on the wedge.
Zooming in on the Russell 2000 to the hourly chart, it looks like we could see some side ways action.
Looking at the Russell 2000 leveraged 3x Direxion short ETF "TZA"
You can see an ending 5 wave wedge. NOTE, this is a leverage stock so the price action is skewed, however, we can still get some insight into the probability's of the action. When we look at the Russell 2000 daily, we see an ascending wedge. When we look at the
Know Your Competition and Find Your Edge for Profitable Trading
Russell 2000 hourly we see a possible ascending triangle, bullish most of the time, depending on other technical's which are also bearish. When we look at TZA, there is a probable wedge in the making, bearish indication for the financial markets. By the way, I still own TZA for the record.
Another thing to note is, if I am seeing this, then that means everyone else is seeing the same thing. Some good training on this concept is a book by Quint Tatro "Trade the Trader" Know Your Competition and Find Your Edge for Profitable Trading
For a trader, you have to do the opposite of everyone else at the right time. The time we are looking forward to is January 20th-23rd. When time and price meet, change is inevitable.