I don't know if it's just a coincidence this time around but either way I like the thinking of this observation I just had so I wanted to post it for whatever it may mean to anyone else.
Ever since the daily pin last week, which is on the far left of this hourly chart, the only valid "swing" breakouts each day ever since that pin were long breaks. Any swing short breaks that occurred did so outside the trading day or did so while the trade bias was long within the swing movements UNTIL today's collapse.
THe blue lines show approximately the levels of a long swing entry on each day, these being the only valid swings that occurred from pin to correction today. The swing low break of this morning was a valid move as I commented about not taking it since I can't hedge, but maybe in the future I will take a valid swing break in the opposing direction of the major trend as a sign to get out or at least cash in something (can always re-enter on any further swings in the proper direction and recover).
This would allow adding to a longer term position with the exits being on swing reversals combined with the usual fib levels and all that. In the short signal this morning, suppose it was just part of a consolidation ranging and we exit all positions of the daily long, but price didn't collapse. Well we'd either still be ranging now and not really have lost much, or we'd have probably had another valid swing long and resumed our long term trade lots. Beats holding the daily long all the way down with the risk of it never coming back.
Tonight I'm going to try trading Bo style. A glass of wine and some shouting lyrics.
I know what your talking about and you lost me....lol It's not you, it's me.(getting tired)
