Support was temporarily found during the last hour of trading yesterday. It was bounce mode from the first few bars in the regular hour session until natural resistance was met in the afternoon session.
The line of least resistance rotated after a substantial run and profit taking became appropriate.
One of the challenges of trading is “guestimating” where the trend runs out of steam.
“The trend is your friend until it comes to an end.”
Great. That’s helpful.
Actually it is. We just need a system to help see where these suspected turning points are. Then, determine if this is a normal profit taking reversal or the real thing, a change in trend.
Many times our entry is a bit clumsy, especially in volatile markets.
We need entry without a stop out. (Many “guru’s” make calls and claim they are making lots of profits. They forget to explain that “real trades” have slop in the market, and you need ENTRY without getting STOPPED OUT.)
Sometimes we will get stopped out because we are too early, other times we miss trades because we are too late. But sometimes, like Goldilocks, we enter just right.
Look for logical “areas” of support and resistance, and give your trade a little breathing room and a chance to make a profit.
Futures are reacting negatively to the bailout plan, which appears to be unraveling.
Let’s see if the market bails out or not.
Scary times, no wonder investors are nervous. Who’s next?