"A trader stares intently at the three-minute chart of the E-mini S&P contract on his computer and sees that prices are plummeting through the 20 period moving average. Instantly he sells several lots, anticipating a sharp move down. But suddenly, price action pauses, stabilizes and then quickly turns around, running back up beyond his entry point. He gets stopped out for a loss. Unfazed, he focuses on his screen once more and now sees that price has pierced the 20 EMA to the upside. His momentum indicators have turned bullish, and now he buys. At first, price follows his direction, turning his floating profit-and-loss statement green – but well short of his target price. The price hesitates again, halts for one more bar and then plunges below his entry and right into his second stop loss of the day. Dazed, he watches silently as it rallies once more and now takes out the daily high without him........"
http://www.sfomag.com/homefeaturedet...ry&YearID=2005
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