Decided to follow through and enter this trade , today was a second demonstration of strong relative strength compared to market . Also, yesterday, we broke up from a base too. Initially the volume looked low and relative volume was below 1 so I decided to stay on sidelines for a bit but we ended up closing yesterday with above avg volume and today LSI had a strong open on a weaker overall day for the market so I entered this in the morning today.
Something important to add... todays volume bar is most certainly an anomaly , we also see a slight upside wick . So it is our duty to investigate here . Is the volume so high because insiders were actually selling into strength ? In my opinion , the answer is no , because when we observe a lower time frame ( 5 min works) it is clearly evident that the buying much outweighed the selling . This is very important because it helps to provide evidence of a possible continued move to upside but it could be the other way around too and then maybe we would know to stay out of the trade . I find that multi timeframe analysis helps to see this . Often you can just tell what volume anomalies are telling us by the daily and it is quite clear but this is a good example of one that requires a little extra investigation to see, especially due to the upside wick .
Stop low of breakout day ...
Something important to add... todays volume bar is most certainly an anomaly , we also see a slight upside wick . So it is our duty to investigate here . Is the volume so high because insiders were actually selling into strength ? In my opinion , the answer is no , because when we observe a lower time frame ( 5 min works) it is clearly evident that the buying much outweighed the selling . This is very important because it helps to provide evidence of a possible continued move to upside but it could be the other way around too and then maybe we would know to stay out of the trade . I find that multi timeframe analysis helps to see this . Often you can just tell what volume anomalies are telling us by the daily and it is quite clear but this is a good example of one that requires a little extra investigation to see, especially due to the upside wick .
Stop low of breakout day ...
Comment:
LSI trade starting out well more of that solid relative strength today really shining through with todays indices gapping down a fair bit at open .
Comment:
Sold half and will hold the remainder using 21 ema adjust stop
Trade closed: stop reached:
Stopped out today on the offering news but very happy with the trade and will happily re enter if price action is good . Small spread up candle vs massive volume is clearly a bullish anomaly , looks like it wants to continue up ...
Comment:
offering is for general corporate purposes and debt which is the more bearish wording in terms of offering terminology . But I am still betting on a continued uptrend at this point , mostly based on that VPA anomaly we see today ...
艾力克~