Boomerang Trader

Monday 3/15/10 …Early choppiness-lower pressure-rebound back

Posted on15. Mar, 2010 by Mohan.

Good afternoon.

The early session saw prices just hovering around just above 1140 as that is an important sell pressure number that chartists are watching.

No dice. Even though they broke it and hit Mohan’s 1138 spot on, the tape bias never turned into a strong bearish reading, so up came the Boomerang Force Index and prices lifted higher.

I’ve noted the Boomerang Scalp Trades on the chart.  The 3rd trade in particular turned into a runner but there was no strong evidence that it would to that after stretching back to the Opening at 1142.00. Good scalp though.

Note: Ive changed the Boomerang Force Index to a “Square” setting which gives an easier read for me and you may find you like it better also.  If you want to change the setting its easy…..

Just right click on your Boomerang chart> Indicators>BFI> Plots> change above Zero and Below Zero (click on + sign) change Plot Style to “Square”  and leave dash style on Solid.

Another excellent day on Boomerang but with a more difficult AM session. Remember, if you see prices hovering around a flat Boomerang Bias line (blue dot) and the Boomerang Force Index also not showing any strength on either side try to stand aside or just wait for a few “flip flops” on each side of the maket.  Usually after 2-3 flip flops the market will stage a stronger move. Watch the tape using the parameters in the handbook and you will get used to dealing with this common occurance in choppy markets.

I’ll post some more charts and trade ideas on Wednesday.  Johnny

Share and Enjoy

Continue Reading