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Thursday, February 09, 2006

SIMPLE DOW SETUP, TOO SIMPLE?

Via the website of the Chicago Board of Trade (CBOT) where the mini Dow Jones is traded I came across this article about scalping the mini DOW. A very interesting article by no means but the essential part, where the writer describes his trade setups I got doubts. He is using a one minute chart and solely trade SMA crossovers of 9 and 16. He is taking all the trades, which "keeps him on the right side of the of the DOW for most of the day" as he says and he uses no indicators and focuses solely on current supply and demand. He gave this chart as an example to show how profitable this system works for him. Yeah.




Well this is how I look at my chart one a one minute basis: It gives me so many trades which will eat ayay my profits and result in a big loss. Or do I use another chart than this guy does?






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