Hey everyone, so yeah as we all know the last 3 week in Sept was so annoying for a lot of traders and if I'm gonna talk particularly I'll say that the tension starts in the 1st day of this month. so let me talk quickly about what happened:
the price between 29th and 4th sept was going up so badly after breakout the trend line of the channel and as I always say, If any price breakout his main channel it will pull back into it again now or later.
Why This kind of Movements of price is Good and bad at the same time?
Reason 1) More liquidity come into the market
R2) Good News Come up
Also, the main reason is:
R3) Making a New level of "Resistance".
This is what we've seen AMZN doing last weeks, the price was going so dully upside before the "Bump and run reversal top". and the Positive result is price up with more than %6. this is cool, BUT.
Why this movement bad for the price?
Because a lot of traders know after any "Bump and run reversal top" is the price will pull back so badly down and this is what happened 'plus we were already overbought', the Negative result is price down with more than %8. so this Not cool. (but it's normal).
%6 up - %8 down = %2. so we need to get this %2 or higher and close this week and finish the month after getting this %2.
But why?
alright so if we wanna confirm that the next Month is going to be a "correction month" is to be into the price zone this week. and we will get into it after we close this month with %2 or more.
so we'll see next month the price start a correction path. upward
the price between 29th and 4th sept was going up so badly after breakout the trend line of the channel and as I always say, If any price breakout his main channel it will pull back into it again now or later.
Why This kind of Movements of price is Good and bad at the same time?
Reason 1) More liquidity come into the market
R2) Good News Come up
Also, the main reason is:
R3) Making a New level of "Resistance".
This is what we've seen AMZN doing last weeks, the price was going so dully upside before the "Bump and run reversal top". and the Positive result is price up with more than %6. this is cool, BUT.
Why this movement bad for the price?
Because a lot of traders know after any "Bump and run reversal top" is the price will pull back so badly down and this is what happened 'plus we were already overbought', the Negative result is price down with more than %8. so this Not cool. (but it's normal).
%6 up - %8 down = %2. so we need to get this %2 or higher and close this week and finish the month after getting this %2.
But why?
alright so if we wanna confirm that the next Month is going to be a "correction month" is to be into the price zone this week. and we will get into it after we close this month with %2 or more.
so we'll see next month the price start a correction path. upward