One pattern I have observed over the years is that when we look above a level everyone is watching, like 4418s today, and then immediately sell back down, it's almost always good for a BUY, especially when it consolidates shortly after. Chart watchers see a "pin" or "star" or "rejection" candle and get very excited to sell it, and the market almost always tries to use their buy stops as fuel for further upside exploration (today it was only good for a small peek above up to 23s). The other takeaway is that if it's truly a juicy short after such a rally, there's almost always a good opportunity to get in, in today's case, the retest on the pop back up to 4416 after the initial breakdown. As Smashelito said, tricky for sure, but something you might look for in the future and see if it can be useful in your toolbox!
Thank you, buddy! yesterdays level was spot on x 4367 - took long all the way and scaled out.
Thanks Smash
I have a quick question Smash, why does the characteristics of shallow pullbacks in the 55 handle rally diminish its potential?
Hi Smash... Thank You! What you do has been so helpful to me in understanding the workings of the auction. Amazing as always!!
Had a question..
Why do you get those random red and blue coloured bars on your renko chart usually at highs/lows and also what is that big red bubble at the end?
Tricky conditions at the moment!
One pattern I have observed over the years is that when we look above a level everyone is watching, like 4418s today, and then immediately sell back down, it's almost always good for a BUY, especially when it consolidates shortly after. Chart watchers see a "pin" or "star" or "rejection" candle and get very excited to sell it, and the market almost always tries to use their buy stops as fuel for further upside exploration (today it was only good for a small peek above up to 23s). The other takeaway is that if it's truly a juicy short after such a rally, there's almost always a good opportunity to get in, in today's case, the retest on the pop back up to 4416 after the initial breakdown. As Smashelito said, tricky for sure, but something you might look for in the future and see if it can be useful in your toolbox!