I love the short side of the market. As a consequence I used to hate test bars as they tend to fail in a weak market. Instead I should have been ready to jump on them & short like crazy. I used other methods to find my entries.
During the last break I re - read MTM & did a lot more analysis with now a lot more insight into the long side of the market. Yes, once again I have fallen in love with the long side of the market.
Now, as many disagreed with me, (correctly) I love test bars again as a safe point of entry.
Coupled with reading areas of support, see how quickly they test.
Note how with more intense areas of support comes rapid testing. I call it the principle of certainty. The market wants to be very sure of their next move. Tom says that they test the market frequently.
Look for demand on the down bars at a support base in this case.
During the last break I re - read MTM & did a lot more analysis with now a lot more insight into the long side of the market. Yes, once again I have fallen in love with the long side of the market.
Now, as many disagreed with me, (correctly) I love test bars again as a safe point of entry.
Coupled with reading areas of support, see how quickly they test.
Note how with more intense areas of support comes rapid testing. I call it the principle of certainty. The market wants to be very sure of their next move. Tom says that they test the market frequently.
Look for demand on the down bars at a support base in this case.
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