In my own trading account I have done that.
On 11/27/18 S+P broke out above resistance STOP at 2670 on a Closing Basis.
For me as a trader, that was my STOP
meaning that I will no longer short this rally,
until such time that the S+P drops back below 2670 decisively on a Close.
Anticipation on the G-20 Meeting, and a potential a meaningful new trade agreement
between the US and China, is obviously boosting price in anticipation,
as is short covering, as no one wants to be short on that kind of news announcement
which could be coming this weekend, when the markets are closed.
The market has been up since the opening tick this week, and shows no sign of abating.
It is a sneaky kind of rally, that at this point is difficult yo judge how far it can go.
Above 2690-2700, things will get very real in a hurry, as the big boys should be out, to unload their big block shares.
I recommend caution at this point. Let the dust settle however it will.
Friday Nov.30,2018 will be a very important trading day, as it is the end of the month, after October
so prices will gyrate like a magnet back towards important Monthly Support /Resistance.
For now, I am on the sidelines, waiting..watching.
Prepared to FULLY SHORT AGAIN, on a CLOSE
, and decisive move back below 2670.
this is my own trader's instincts and chart readings
that I am writing you about
and is not meant as trading advise per se to ANYONE
Thank you, for your continued, and awesome support.
SPX Last 2682.17
11/28/18 8OO AM
Thank you very much.
I use line charts for all my trading.
posting on 10x10 Graph Paper, with Mechanical Pencil.
You may be a more sophisticated trader than I am, Svi Capital.
I SIMPLY PLOT THE OPENING PRICE in whatever time frame I'm using ( Mainly 60 Minute For Intra Day Trading.
The line chart REVEALS THE ANGLE OF ASCENT OR DECENT. I SIMPLY DRAW OUT TREND LINES CONTINUOUSLY
and wait for a Chart Breakout..and the POUNCE ON IT ! :)
I like your insights here SviCapital. Perhaps you can give me any insights on rejection
but I know by the shape of the bar thus know exactly what you mean by the candlestick illumination.
Note: I use candles for my intra-day data charting package.
Can I say impressive...:)