In TV, probably we can see the gap down but in IG and CMC platforms which I am using to trade, both NGAS charts show gap down on the 1 hour chart. The price fell from 2.33 to 2.19 , a drastic drop and also a short term buying opportunity for it to close the gap.
There is support at 2.199 on 11 Oct 19 so I am expecting a pull back from here. Usually, when there is a sharp drop like that , it will usually rebound quite strongly. Not al the time but based on my empirical research, it would.
Else, if it fails, we are looking at the next support at 2.037 as the weekly support level before any decent rebound.
With this as backdrop, you have to ask yourself if you are willing to risk from current price to 2.037 before the rebound takes place ? The rewards is HUGE as we are talking about a possible bottom for NGAS now.
I have just initiated a small position to test my strategy and if it falls to 2.037, I would be accumulating more. Yes, in terms of trend strategy, it is against it as it is still bearish so for first timer to trend lines, you may be a little confused and I would not encourage you to take any position till the bearish trend line breaks out.
There is support at 2.199 on 11 Oct 19 so I am expecting a pull back from here. Usually, when there is a sharp drop like that , it will usually rebound quite strongly. Not al the time but based on my empirical research, it would.
Else, if it fails, we are looking at the next support at 2.037 as the weekly support level before any decent rebound.
With this as backdrop, you have to ask yourself if you are willing to risk from current price to 2.037 before the rebound takes place ? The rewards is HUGE as we are talking about a possible bottom for NGAS now.
I have just initiated a small position to test my strategy and if it falls to 2.037, I would be accumulating more. Yes, in terms of trend strategy, it is against it as it is still bearish so for first timer to trend lines, you may be a little confused and I would not encourage you to take any position till the bearish trend line breaks out.
Comment:
2.199 is a crucial support now. If it holds, then the price would go up from here. But, if not, we are looking for the price to head south towards 2.037.
We are out with 1 profit and 1 loss, net small loss. Now, we are awaiting for the next buy opportunity
We are out with 1 profit and 1 loss, net small loss. Now, we are awaiting for the next buy opportunity
That's the beauty of trend line trading, just ensure price has not fallen out of line.
Even a 3 year old toddler can do it. The question is not the lack of knowledge but rather the lack of discipline. Times after times, I had made the cardinal sin of exiting too early, entering too early prior to confirmation born out of fear and greed.
Keep the tongue from evil and your lips from telling lies - Psalm 34-13
Trading , often is a loner's game unless you are part of a community of traders. So, you spent the large part of your time talking to yourself (we all do , traders or not). And thus, the negative things that we said to ourselves will influence our actions.
Be careful of your thoughts , ensure it is positive, pure and joyful.