A blog to be alive is meaningless without its readers and it is these that dictate the future of it with their comments and contributions. For this reason, TradingdeGuerrilla opens space with article contributions of Miguel Morales: ‘A Strategy for “Pillar” trend. “
In uptrends, buy setbacks in the level of support is smart, especially when the volume is low. However, when the shares comprising the index is no strong distribution (low volume up) is not historically successful buy stocks or ETFs in these support areas (large are selling). You could buy in any case, if the volume was low recoil and had some stabilization in the market. But the market clearly facing a very strong distribution correction, it’s smart to wait until prices stabilize and begin to rise with strong volume (accumulation).
If the indexes follow the selloff and begin to bounce off the 200 – day moving average, with strong volume increase in rebounds on the moving average, then began to show some support. If produces a “follow-through day” (when after retraction volume indices exceeds 1% of the volume of the previous day) ( William J. O’Neal “How to Make Money in Stocks on what to look for “), then you could start taking light long positions.
Obviously, the market could find support now, in the moving average of 50, but 130 years of graphics such movements suggest that the average of 50 not last.
Miguel Morales (u235m)