“Amity Island had everything. Clear skies. Gentle surf. Warm water. People flocked there every summer. It was the perfect feeding ground…”
At 11:30 I suggested to colleagues to take their short profits off before noon today. It could have gone to any day low, but I felt the weekly shorts should capture their profits early after such a great week.
It turned out to be a lucky call.
Guessing against the trend is never easy, but odds and probability shift and you have to adjust your plans accordingly. (Remember the Commander’s Intent theory?)
There are many techniques that technical traders use to project possible targets, but it is not an exact science; it is more about being prepared for areas or “zones” of support and resistance, and then not being stubborn when the momentum clearly shifts from one side to the other.
This is the “art” of trading.
When there is blood in the street, be on the lookout for jaws.