Might be a good time to re-read this post from earlier.
KEEP YOU EYE ON THE 12:00 TIME FRAME and the trading shortly thereafter.
KEEP YOU EYE ON THE 12:00 TIME FRAME and the trading shortly thereafter.
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Now your question ... when price violates a level like balance. Don't react too quickly. Give it time to fail in other words. Many times, large traders are right on the other side waiting for people who think the market is going to move down, then zap they get caught and the market soars up on short covering.
Learn to give it time, observe, don't put a time frame on it. You will know when you are wrong.
Now if the market, shot thru by 50 points for some reason, then react. Get out.
I hope this makes sense. Learn to be an observer first and a trader second.
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