This looks like it's setting up a good opportunity. Whenever I see hyper strong moves in a market I also get interested in fading them, but since I've always done that I've learned it's usually a much better idea to wait until that goes really badly for some people first. Typically it's better to be the last bear than the first. And part of what I look for in this is for there to have been an obvious bear trap and take-out of those shorts. When I see this, I like to look for short opportunities into the 161 level and my stop goes behind the 220.
If we see a top here, it's possible we get a hard 50% down before a bull trap forms on CAR.
worst name to short right now. rigged and manipulated, pure greed on display
DuffTrades
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Weekly/Monthly chart just looks like a massive breakout + retest + send it that's been years in the making ... feels like a super high risk fade until at the very least some weakness shows on some lower time frames. Assuming your system in fading something like this is backtested and profitable then I definitely think it's interesting but this just looks so strong!
holeyprofit
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@DuffTrades, Parabolic conditions into the 161 are one of the prerequisites for the short. It's typically where a blow off top terminates. GS is another example of where I see this.
DuffTrades
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@holeyprofit, One seemingly significant discrepancy I see in the setups that GS is showing clear bearish divergence on multiple indicators (I peaked at RSI, MACD, AO) across multiple significant time frames (1D, 3D, 1W) which adds a ton of confluence to the setup. Just feels like an early fade on CAR to me and I know you said you don't like to be an early bear. Still really like this as a potential setup and keeping an eye on it now. Thanks for the insight!
holeyprofit
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@DuffTrades, At current prices we have an AB=CD on the large timeframe - with this matching the 161 I'm generally inclined to speculate.
DuffTrades
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@holeyprofit, Hey so following up to this, now showing bearish divergence across multiple time frames on RSI & MACD to add some additional confluence to the idea that I'm really liking. Hopefully you didn't get stop hunted by 30 cents.. but we've all been there.