Psych Levels, Pivots, and Trendlines - Resurrected
I wonder if anyone got this one? I certainly didn't, having to be involved with something totally divorced from trading. Sod's law!!!
Price pierced R1 and then a bearish engulfing candle formed, followed by a strong momentum plunge southwards. I've put where my entry and exit would have been, but look how much further it dropped after my "exit"!!
Continuing the tale............
By keeping a watch this time (!), I managed to get this one a little further on from the above posting.
A retrace to the mid-point level, and then another bearish engulfing candle heralded another plunge, this time to the Main Pivot line.
I feel better now..............
ev,
neat, wasn't it?
i was about to post that one.
my exit was near 75 which is also approx 50% ret level of today's strong up move.
Delite, Dan,
It can vary.
if the direction is well established and one is looking for a continuation at a time when market activity is relatively good, i would most likely take the break of the bar that closes beyond the TL. if it's a big bar, i'd wait for a retrace or if no retrace, i'd let it go and wait for the next HL_LH.
in the instant case, it's a reversal after an extended move. so, it's a more cautious classic 123 entry like the one marked at 11096.
hope that helps.
