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... monicadern

Yes Red, it's frustrating but it can't last forever. In the meantime I guess maybe it would be better to stand on the sidelines.

... Earl of

FWIW

Found the chart: a Bollinger 9.0 on IB
Apparently IB Bollinger charts are sometimes 9.0, and sometimes 20.0.
Should have used Stockcharts in the first place.

... gcocks83

Dread, Nice Post, Your writing and charting is getting better everyday. Sittinn on the sidelines is not a bad move right now.

... Earl of

FWIW

Found the chart: a Bollinger 9.0 on IB
Apparently IB Bollinger charts are sometimes 9.0, and sometimes 20.0.
Should have used Stockcharts in the first place.

... gcocks83

Dread, Nice Post, Your writing and charting is getting better everyday. Sittinn on the sidelines is not a bad move right now.

... dreadwin

That particular set up was also a time when the standard RSI setting (14) works against you and keeps you from making a trade. On an RSI (10) it becomes more obvious.

... Earl of

If I was using americanbulls logic, I would have seen the RSI < 30, but waited for a buy signal (a couple of days later), then would have been ok.

That would work.

... dreadwin

The tradeable move in TZA during that time frame was to buy TZA at the close (9.41)on the 24th during the massive, ridiculous underthrow by $RVX. Sell on the 31st at the close (9.86). +4.5%

... Earl of

Dreadwin,

I'll take your word for it this time 🙂

However, I pulled up the $RVX chart and the TZA chart and found Dec 21st:

Started 4 days in a row with RSI < 30
Not a good time to buy TZA

Must not be a general truth.

... dreadwin

Basically, the MACD on $RVX was setting up for another bump up, and it got whacked yesterday. Ben must have sent some mafia tough guys and twisted some arms. It just doesn't look natural.

There is a fractal playing out here, looks like a wedge. Watch out for the underthrow — it will be rough for bears to swallow if we play a repeat of the December fractal.