Check out my full post at:
www.derzzycharts.com...-dont-short-strength
Everyone makes mistakes, and I just made one with LINK. Sometimes you step away from your process on a feeling and then you quickly remember why you have a process. Candlestick patterns are not my strong suit. I really don’t utilize them that much and they are an area that I could definitely study more. I don’t even trade in color! This is an emotional tactic that I personally use to fade my own trading emotions.
Anyways, I shorted LINK with the right risk at 1% of my portfolio, and learned very quickly why you do not short strength. I did this because I thought I had scoped out a blow off top long upper shadow (bearish). I did not even consult my other indicators! The cloud is bullish, the MACD is bullish, and the RSI just put in its first bearish divergence (which in my process is not the time to short, but to exit profitable positions).
So as a reminder to myself and everyone out there, short weakness, buy strength, not the other way around! Follow your decision making process because when your wrong, at least your wrong for the right reasons. In the case of my process, wait for the RSI to break through 40 and fail at 60 before entering a short.
Happy Trading!
Brandon Anderson
brandon@derzzycharts.com
@derzzycharts
www.derzzycharts.com
www.derzzycharts.com...-dont-short-strength
Everyone makes mistakes, and I just made one with LINK. Sometimes you step away from your process on a feeling and then you quickly remember why you have a process. Candlestick patterns are not my strong suit. I really don’t utilize them that much and they are an area that I could definitely study more. I don’t even trade in color! This is an emotional tactic that I personally use to fade my own trading emotions.
Anyways, I shorted LINK with the right risk at 1% of my portfolio, and learned very quickly why you do not short strength. I did this because I thought I had scoped out a blow off top long upper shadow (bearish). I did not even consult my other indicators! The cloud is bullish, the MACD is bullish, and the RSI just put in its first bearish divergence (which in my process is not the time to short, but to exit profitable positions).
So as a reminder to myself and everyone out there, short weakness, buy strength, not the other way around! Follow your decision making process because when your wrong, at least your wrong for the right reasons. In the case of my process, wait for the RSI to break through 40 and fail at 60 before entering a short.
Happy Trading!
Brandon Anderson
brandon@derzzycharts.com
@derzzycharts
www.derzzycharts.com