Tuesday, July 19, 2011
Issue 082 - Do The Hoffman
Well I was told the Robert Hoffman of Power Charting blew up during a live trade to a tune of over $300k. The following charts will show you why he blew up. Apparently he was long just before the high on Thursday. Don't really care to know where. Evidence in the charts show, he failed to read charts.
Bearish momentum pop back to previous high lost support then sell hard! Distribution from previous day sent you down to Thursday's low. Did you get an accumulation setup here? NO! In fact, same kind of pop to Thursday's high, 1st touch on more bearish momentum. The pop from Thursday's low is on 1st touch scenario on succeeding bearish cycles on the macd. Therefore you can expect a continuation of the move down. So where can it go from there?
Death by progression. TF has been distributing since 6/21. The Tuesday before was a 1st test scenario. If you look at 7/7 + 7/8 on the daily chart, isn't that a Hoffman 2bar?
Martingale averaging down strategy help kill the account, to avoid a losing trade. And add a case of no clue what the charts are saying. Gives you Peggy! A prime example of how Hoffman ended up at the receiving end of a defecating elephant.
Do The Hoffman by kewltech is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 United States License.
Based on a work at kewltech.blogspot.com
Posted by KEWLTECH at 10:09 AM