Targets at support were hit and then some. A liquidation run can be expected when price reaches an area that has been highly anticipated. It provides a lot of liquidity as many will attempt to trade at that level with stops just outside of the range. Those stops become the fuel for the extended move. It's important to keep focused on the setup and what's going on in the background behind price and not get drawn in emotionally.
Trading isn't an exact science and sometimes it takes a couple of chances at a setup before it goes in your direction. Stay focused on the setup and keep playing your edge. Many traders will give up after an extended move instead of recognizing what's really going on and that the setup isn't going away. It's just getting better and better.
One thing that helps me with timing is trading near the end of a candle close and waiting for a specific type of candle to form when other conditions are present. Widespread candles closing near the high/low. When there is a large wick, many times, the area of the wick will be tested.
The 3/15/23 candle is a widespread candle with a large wick. It was tested over the next 3 days as the market tried to lure in more shorts on the lows. After the last test, there was a trendline break and the market rallied to the 38 fib where it sold off to the 61.8 fib measured from the low to the recent high. I'll let you measure that for yourself. After a TL break, that is a typical correction used to get those on the right side of the market out of their trades. Most are too short-sighted and are easily shaken out. The daily candle closed well off of the lows. Now we wait to see if the testing, accumulation, and shakeout phase is complete and ready for a further move higher.
If it falls, I will catch it. I'll be waiting. Time after time.
Remember, keep your risk low and manage your trades.
Plan. Execute. Next.
Trade Less. Make More.
Trading isn't an exact science and sometimes it takes a couple of chances at a setup before it goes in your direction. Stay focused on the setup and keep playing your edge. Many traders will give up after an extended move instead of recognizing what's really going on and that the setup isn't going away. It's just getting better and better.
One thing that helps me with timing is trading near the end of a candle close and waiting for a specific type of candle to form when other conditions are present. Widespread candles closing near the high/low. When there is a large wick, many times, the area of the wick will be tested.
The 3/15/23 candle is a widespread candle with a large wick. It was tested over the next 3 days as the market tried to lure in more shorts on the lows. After the last test, there was a trendline break and the market rallied to the 38 fib where it sold off to the 61.8 fib measured from the low to the recent high. I'll let you measure that for yourself. After a TL break, that is a typical correction used to get those on the right side of the market out of their trades. Most are too short-sighted and are easily shaken out. The daily candle closed well off of the lows. Now we wait to see if the testing, accumulation, and shakeout phase is complete and ready for a further move higher.
If it falls, I will catch it. I'll be waiting. Time after time.
Remember, keep your risk low and manage your trades.
Plan. Execute. Next.
Trade Less. Make More.