Since publishing the long idea in late August at $4.29 (orange circle) price action has zoomed up 1000%. Not bad. A number of reasons now exist to be short. They include:
1) Price action has arrived at significant support and resistance, $41.
2) RSI is @ 95 on the 5-day, 97 on the weekly chart. The highest in the history of this chart.
3) Price action is four sigmas from the Bollinger Band mean. Four! (see 5-day chart below). How significant is this? If you’re a probability nerd like myself, you’ll know. If you should take away anything from this it is, Price action will ALWAYS interact with the Mean 90% of the time (the orange middle line). Right now that price is $11.
4) Some other reasons said elsewhere.
Is it possible price action keeps going up? Sure. Is it probable? No.
Ww
Type: trade Risk: 2-3% Timeframe for short: Couldn’t say
5-day Bollinger Band
Trade active
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Comment
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At this rate the target shall be accomplished in the days ahead.
Trade closed: target reached
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Touched 17.30, good enough.
Trade active
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Although the target was already achieved it is about to happen again. Thought you all should know because there is a ridiculous number of long ideas out there.
2-day
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(again).
Trade active
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GRM resistance confirmed.
Trade closed: target reached
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Wait for price action to fall below $8 before entering the consolidation area as shown below.
@without_worries, Sorry! Too many TV ideas! You are expecting $16 again...
without_worries
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@marcolopes, Price action will not make a new uptrend without a period of consolidation. From where I'm sitting price action has at least another 50% correction. Otherwise it was a successful trade, one of my first 10x'ers in this bull run.
DeepValueInvest
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Hi @without_worries, how are you? Is it possible its finding support at $41? :)