Why don't we play pretendies? Since this is the Short Term Trading Thread why don't we try and trade E2E for a short period.
You've seen the big candle in the middle of November, but drats you were watching Ellen give away a car, and saw the run late. Never chase a runner is a good golden rule so you give it a miss, preying it doesn't run off into the sunset without you. Whew, it fell from 3.5 to 1.9, and you narrowly avoided a 46% loss. Good job. Well done.
It slowly drifts back on low volume, and at the back of your mind you're thinking it's gonna run again. It finds support at 1.3, and starts running to 1.5. Fantastic candle setup. Do you pull the trigger? Well do ya punk? Do ya feel lucky?
There's no volume so you chicken out. Woos.
It opens the next day at 1.3. What happened to the strong finish yesterday? And then it starts drifting again.
1.2 … 1.1 … 1.0 … gotta find support here … 0.9 … 0.8 … crap what's wrong with it? Down from 1.5, you've avoided another 46% loss. Good job. Well done. The forum's imploding. Sack the management and put in a chimpanzee … all hope is lost. Nup, just when all hope is lost some idiot buys a small package and brings it back to 1.0 What a goose. It stays there for a few days. You've now been watching this flee bitten mutt for seven weeks, for no gain, and you look at HC best daily gainers … 80%, 70%, 50% … why are you so unlucky when everyone else is making bags?
Out of nowhere it starts running on a little bit of volume. This time you've got Ellen turned off and it really gets your attention. It's happening so fast. Do ya pull the trigger. Well do ya punk?
Would you have been good enough to buy in at 1.1 and get out at 2.2 (when it gapped up at open), and the profit taking started. A nice easy bag. Or better still, in at 0.8 and out at 2.2. Almost two easy bags.
I'm sure you're now looking very closely at the last three candles … and if you know anything about candles, you'll know what that setup means.
(20min delay)
