Yesterday we looked at the weekly candle as it was getting ready to close and noted that there was still plenty of room left on the downside. One of the most common problems I see with inexperienced traders is the unwillingness to bet on the trend.
A common perception that I am seeing is that the price has already fallen too far to justify the risk:reward of a short. This logic is sound but it is going to be incorrect more often than not. Markets will rise and fall much more than you can imagine and this mind state could cause you to miss out on some great opportunities.
I am going to continue aggressively shorting the market until we see some serious capitulation. Peter Brandt says that he likes to trade in between the 20 yard lines of a trend, and is never concerned with catching the top or the bottom.
In my opinion we just entered field goal range on the 40 yard line and there is still plenty of time to profit from this bear trend. You can go for a field goal by scalping $200 - $500 moves or you could go for the touchdown with a $4,975 target. I am opting for the latter.
A hanging man just closed on the 4 hour chart. It was following a rally in the price and I expect the top of the wick ($6,345) to mark a major point of short term resistance.
We are fast approaching a major resistance cluster which will be coming from the 50 period MA on the 4 hour chart, the 12 period EMA on the daily chart, the downtrend that started on 5/6 (red line) and prior support which is expected to be turned into resistance (white line).
I added to my short at $6,284 and am closely watching for further confirmations where I can add more. As I said yesterday I am viewing this as the last squeeze before eventually breaking down $5,900 support.
Thank you for reading! Have a question? Leave a comment! Smash the follow so that you don't miss out on future updates and remember that clicking the like is good karma!
A common perception that I am seeing is that the price has already fallen too far to justify the risk:reward of a short. This logic is sound but it is going to be incorrect more often than not. Markets will rise and fall much more than you can imagine and this mind state could cause you to miss out on some great opportunities.
I am going to continue aggressively shorting the market until we see some serious capitulation. Peter Brandt says that he likes to trade in between the 20 yard lines of a trend, and is never concerned with catching the top or the bottom.
In my opinion we just entered field goal range on the 40 yard line and there is still plenty of time to profit from this bear trend. You can go for a field goal by scalping $200 - $500 moves or you could go for the touchdown with a $4,975 target. I am opting for the latter.
A hanging man just closed on the 4 hour chart. It was following a rally in the price and I expect the top of the wick ($6,345) to mark a major point of short term resistance.
We are fast approaching a major resistance cluster which will be coming from the 50 period MA on the 4 hour chart, the 12 period EMA on the daily chart, the downtrend that started on 5/6 (red line) and prior support which is expected to be turned into resistance (white line).
I added to my short at $6,284 and am closely watching for further confirmations where I can add more. As I said yesterday I am viewing this as the last squeeze before eventually breaking down $5,900 support.
Thank you for reading! Have a question? Leave a comment! Smash the follow so that you don't miss out on future updates and remember that clicking the like is good karma!
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