As many of you, I have traded through my fair share of such important corrections of such trends.
Rarely are they not followed by an extra move in the present direction, before getting back with the trend, following through with the reversal, or getting stuck in whipsaw for quite a while.
So Bulls are probably in for another beating or two!
BUT if not, as a bear Ill beware :
When a correction of this magnitude is immediately countered (example : if without any significant closings below Fridays low, it just gets right back up to 21 today or tomorrow), it is often done just about as continuously as the correction happened, and then it is most probable that the trend will pursue and a new battle at its highs will happen. Only after that could I then evaluate the chances of it reaching even higher summits.
Right now, for me, and as always, anything can happen. And anything should be prepared for.
It is the ratio of accepted setups. Right now am at 100% longs and around 70% shorts, and 2027 was moved to 2010 mainly because of the nature of Fridays drop. Under that, Id be back 100/100 and a full month of longs crazy would be (perhaps temporarily) over!!
I have no longs above neither do I have any shorts (had only 2 Friday shorts left and closed them before the weekend, as they were too fresh).
My remaining longs are from 1726 to 1998, but will all be closed if we get around 1980.
At that level, would need to wait for the usual couple hours of high volatility around that level and the end of that war's LOW will probably be my SLs.
Also had an increase of short setups acceptance since the 50s were reached, but now that stays in effect only under 2035.
I am still taking setups in full buying mode now, and in full "keep longs open with SL at BE" mode if above 2035.
Hope it helps Nic, cheers and happy trading !
Rarely are they not followed by an extra move in the present direction, before getting back with the trend, following through with the reversal, or getting stuck in whipsaw for quite a while.
So Bulls are probably in for another beating or two!
BUT if not, as a bear Ill beware :
When a correction of this magnitude is immediately countered (example : if without any significant closings below Fridays low, it just gets right back up to 21 today or tomorrow), it is often done just about as continuously as the correction happened, and then it is most probable that the trend will pursue and a new battle at its highs will happen. Only after that could I then evaluate the chances of it reaching even higher summits.
Right now, for me, and as always, anything can happen. And anything should be prepared for.
Dislikedhey mtako, may i ask what your ratio of the number of longs to shorts is currently? do i understand correctly that below 1.2027 you have a strong selling case and above you keep more longs than shorts?Ignored
It is the ratio of accepted setups. Right now am at 100% longs and around 70% shorts, and 2027 was moved to 2010 mainly because of the nature of Fridays drop. Under that, Id be back 100/100 and a full month of longs crazy would be (perhaps temporarily) over!!
I have no longs above neither do I have any shorts (had only 2 Friday shorts left and closed them before the weekend, as they were too fresh).
My remaining longs are from 1726 to 1998, but will all be closed if we get around 1980.
At that level, would need to wait for the usual couple hours of high volatility around that level and the end of that war's LOW will probably be my SLs.
Also had an increase of short setups acceptance since the 50s were reached, but now that stays in effect only under 2035.
I am still taking setups in full buying mode now, and in full "keep longs open with SL at BE" mode if above 2035.
Hope it helps Nic, cheers and happy trading !
If I don't mention SL and/or TP = longer-term setup possibly in the works!
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