Catching a falling knife is dangerous
BUY
- Not recommended when it’s on a downtrend within a channel
SELL
- Cut loss immediately to be in cash position
RATIONALE
- Support can be broken easily
- Chart would have shown the reasons ahead of any announcement
- Do not fight with the tape
- Possible entry was early in the beginning of the year at around 2.8 after establishing a base for almost 160 days – which would result in around 20% profit
- Nail down profit after it broke ATH would have protected the profit and avoid the downtrend
- Not recommended when it’s on a downtrend within a channel
SELL
- Cut loss immediately to be in cash position
RATIONALE
- Support can be broken easily
- Chart would have shown the reasons ahead of any announcement
- Do not fight with the tape
- Possible entry was early in the beginning of the year at around 2.8 after establishing a base for almost 160 days – which would result in around 20% profit
- Nail down profit after it broke ATH would have protected the profit and avoid the downtrend
Comment:
avoid