I don't really believe in support and resistance. Quite often you'll hear people say I should have held on to my winner or something like that. This is anecdotal evidence of the unreliability of support and resistance. Human beings are wired to see patterns on charts even when they don't exist. I would add evidence about how support and resistance are mere lines on the chart majority of the time but citing sources risks me getting banned.
One might ask why am I trading more than one pattern and why this pattern. The reasons are fairly straightforward-
1. Bull momentum seems to be fading and in a non-trending market, breakouts have a higher failure rate.
2. Buy low, sell high prevails in a non-trending market, which is more often than not, the state of the market.
Another bit of information is that we've heard not to trade against the trend. But a failure test is a very good reason to take a counter-trend trade as you might just catch the beginning of a move.
Disclaimer: Do not take positions with me without your due diligence. Investments are subject to market risk and I should not be held responsible for the losses incurred. This is meant to be a real-time trading tutorial and not investment advice.
One might ask why am I trading more than one pattern and why this pattern. The reasons are fairly straightforward-
1. Bull momentum seems to be fading and in a non-trending market, breakouts have a higher failure rate.
2. Buy low, sell high prevails in a non-trending market, which is more often than not, the state of the market.
Another bit of information is that we've heard not to trade against the trend. But a failure test is a very good reason to take a counter-trend trade as you might just catch the beginning of a move.
Disclaimer: Do not take positions with me without your due diligence. Investments are subject to market risk and I should not be held responsible for the losses incurred. This is meant to be a real-time trading tutorial and not investment advice.
Comment:
Huge bullish bar finally! Hoping for a strong follow-through in the coming days.
Trade closed: target reached