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Old 01-06-2008, 11:57 AM
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Re: Doji or Evening star?

James - for me, it doesn't really matter as it is a matter of how aggressive you want to be. In other words, you could consider a short on the doji-type candle or you can wait for additional confirmation and then get another reason to short. Obviously in hindsight you would want to be short on the doji, but additional confirmation is not a bad thing either.

Your chart actually brings up a few possible trade scenarios:



Here we see:

1) Could short on the doji (#1).
2) Could short on the bearish confirmation after the doji (#2).

Now, a trade management idea here could be to enter the trade on #1 with a % of available contracts and then add to a winning position based on #2. Just an idea.

========================= ========================= =



Taking a look at the daily James and I think we can see some overhead resistance here. Obviously $100.00 even is a MONSTER psychological number. So had you been watching this chart, I'm sure you can see a number of possible shorting opportunities when price approaches the 100.00 level. Sooner or later this level will break, but as of now, I see about 5 trades or so when price hits the 100.00 level.
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