Diving in a 1 metres poolCommon sense would tell us that it is very risky to do that, not only endangering one's life but may also cause injuries to other users. However, common sense is not commonly practised.
It is the same in trading. When we know that a particular stock, like PDD is riding on a strong bullish trend, there would be a group of daredevil traders who enjoy taking it down albeit temporarily.
Such corrections when done right could generate good profits for them. But the risks are equally high. In this 1H chart, the probability of it revisiting the support at 84.02 is quite high yet these group of traders would execute a short position to take advantage of it. I used to do that and was very busy in one company or index. It was a frantic and stressful situation.
The challenge is it might not retrace to the support level but midway and rebound. We don't know, really. It could also have a small red candle before breaking out of the resistance at 98.15 as well. We also don't know.
But what we do know is the weekly, daily and 4H time frames are showing strong bullish signals. Thus, this 1H correction, if it happens could be a short lifted one. The risk reward ratio, imo is not worth the time, effort and risks to bet against it. It is definitely easier to go with the flow then against it. What do you think ?
