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08/11/16
17:54
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Originally posted by Jako64
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I probably should have asked what timeframe you were thinking about, before I answered
You can trade a bounce at anytime if you are nimble for sure (which I call a supply vacuum, or in the Wyckoff lexicon an Automatic Rally (AR) ), just use an intraday or shorter term timeframe. And note that the highs of the AR often help to define the top of a new trading range and/or the creek.
Just be nimble........and take profits when weakness is seen.
I was taking it for granted, that you were thinking about a swing trade or longer, after some sort of climactic action.
And while there might be a climactic event, generally only really massive climactic action sees a 'V' shaped recovery, whereas usually it will usually take a bit more work over time mopping up supply, and shaking out any supply from above, that is willing to sell (for a loss).
cheers
now I have over thought this one. There was an intraday opportunity to buy into the close as it would have been looking strong. Hold it overnight and if the open looks like gapping again, set the target and when achieved bail, or if the open if weak sell into it.
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Now I have analysis paralysis and have over thought it. There was an intraday opp to buy late arvo and or into the close as it was trading strongly. Hold it overnight and if the open looks like it will be another gap open sit and wait for the right price level to bail or if the open is lookin weak sell into it and look for the next trade.
Cheers
GF