Going down to the centerline, just to recverse to the upside.
Free Basic A/R & Forks Course: http://mytradingcoach.teachable.com/
...and her's the trap i try to avoid:
I have to trade the "framework", the "system", not my opinion, because i don't know anything of the future.
In this case one rule of the forks framework say: "Price has a high probability to reach the next A/R (Fork-) Line."
Adding the Charts fact, like the low close of the last bar, and the failure to reach the CL. , i have some "confirmation", that the rule could be valid agian this time.
But her's my personal rule Nr. 1 : I don't know...
Have a sunny day ForceFollower and thanks for your comment, which i allways appreciate.
a) buying now (low) is good, or even a must for the longterm investor
b) for "Traders"...where would one put the stop, what's the strategy behind? Just for daytrading, i would wait for a sign to the upside.
Or, you could play it with options, like a risk/reversal or such.
All depends on your overall strategy...it's so different like the cakes in a bakery...the only common thing that all cakes have are the calories we have to burn with sweat and exercise §8-))