TODAY:
Price action was stalling around 1506 area. As a new trader you would not have the experience nor knowledge of the Break Out Targets. But you would have a two bar pull back to EMA with a third bar breaking it. This is a steep sell off, (bearish) trend that is playable with your trend lines. That TL was broken around bar 8-9 for your exit.
The pull back to the EMA would be considered counter trend, and not a play for the beginner. I do not suggest playing these, until you are confident with "with trend" plays.
In this case, some shorts were covered and a reversal long was enter and held until price stalled around 1504. You now have a second point for a bearish trend line, and should be looking for a short.. A scalp short was taken for a push to the EMA. Trading was over due to another commitment.
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WHAT FOLLOWED?
You trend line continued to see hits for additional shorts and/or new entries. There was a counter trend pull back that broke the trend line. Around bar 66 you have a higher low. Here you should be looking for another push to challenge the bear trend line. With a higher low, a TL break, and a break above the EMA, this is a legitimate long.
Another higher low at bar 78 area was another long consideration.
Continue to practice your trend trades, and practice the micro trends that develop. You should always be looking for a reason to enter, and just as important, a reason to GET OUT.
"This is a steep sell off, bullish trend": bullish should be bearish?
ReplyDeleteIs the area around 24, 25 and 47, 48 also to be seen as a higher bottom (when they have just been developed)?
Thanks for this 3rd day of education!
Thanks. Corrected to read "bearish" Around bars 8, 24, 38, and 58 we see supports being hit. Each could be the "magic" reversal but the overall trend has not been broken. They are regarded as counter trend pull backs until that upper bear TL breaks. Are they playable? Yes. But for experienced traders that will allow a CT to work.
ReplyDeleteThe mechanics of trading are relatively simple, just make sure if you want to long you do not click "sell". It happens in a fast past market. THAT, is part of the emotion of trading, and far harder to resolve for traders at any level of experience.
Yes, mavericks on Wall Street can say whatever. After all, it's not their money.