Seeing this is all over the news and the doom and gloomers are coming out in force (after the fact... of course!) I thought I would step back to the higher time frames to see where we are...
Interestingly we dropped almost perfectly off the high at the completion of an 8 year gartley pattern Looking at the chart now, there is really nothing stopping this falling further till we get to around 3365 where there is a confluence of a long term support and resistance line + a demand level + a 61.8% retracement
This would imply a high to low of around 37%, but in context to the last years rally it would still be considered around a 'normal' retracement of 38.2%, therefore I see the confluence zone as a potential area to look for longs and in the mean time look to sell rallies
Keep it simple, ignore the headline news as they are reporters or economists with no money on the line I.e. not traders...! think like a trader, keep risk low and stack the odds in your favour
Comments
dionvuletich
⋅
Would I buy at this zone - yes... risk is defined and very low relative to the possible gain, such steep falls mean there are no BIG orders there, so price can spike back up through the large candles just as easily as it created them on the downside
but will wait and see how it gets there...
Institutional traders want low risk, high reward, high probability trades,
Therefore if they REALLY want to sell it further they will want to sell it at a point with lower risk i.e. up on a retracement higher
but will wait and see how it gets there...
Institutional traders want low risk, high reward, high probability trades,
Therefore if they REALLY want to sell it further they will want to sell it at a point with lower risk i.e. up on a retracement higher