@seiferflo, Limit Buy @ 7,000 to close short position.
seiferflo
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@unspecial, Yeah i understood that, wrong question. I was asking how did you came up with the 7K target ?
unspecial
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@seiferflo, Scroll left and you will see that in the past similar setups have resulted in the bottom red curve being hit - it's 20% below the blue line.
seiferflo
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@unspecial, I'm not familiar at all with Bollinger Bands if this is the right indicator you're using so please correct if I'm wrong: Most reversals operate when price touches the top & bottom bands. However for trend confirmation price needs to cross the moving average, else we are bound to touch again the top/bottom averages for another try. Is that remotely correct ?
unspecial
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@seiferflo, The blue line here is basically a 20 day MA. When it slopes down I interpret the trend as being down. The narrow band is +-2% and I use as 3 entry prices. The outside bands are +-20% and I use as target. I've found it best to take partial profits in case it doesn't reach the outside bands. What I'm still not sure of is where is the best place to put my stops.