Finally- green moves across the board with everything climbing higher- except USO- down slightly. Can Friday give a repeat higher performance? I certainly hope so-
Looks green across the waters today as well- and while the markets are skeptical -perhaps-
this consolidation range will not push back to the recent lows.
I have some freed cash in the IB account-and I am considering adding some positions-
and - since today's bullish price action in many stocks leaves another swing low behind- I will consider tightening some stocks - likely just below the recent pullback lows-
HEDJ may be a good example of attempted market moves higher, 1st reversal attempts that fail, go lower- and then put in a lower reversal.
At some point- and the wider time frame view may be the most valid at this juncture-
How much of a pullback can one sit through- particularly if higher attempts fail to gain traction?
With recognition that i am at a higher % risk on most trades- I think it's appropriate to reduce some of that Risk- What looks weak? Using the prior HEDJ chart for this example- updated-
A 'pullback' from an uptrend often will give a retracement- and -on a faster chart- that 1st attempt to move higher looks bullish- but may be premature- My HEDJ CHART EXAMPLE
The 2 hr faster chart illustrates the intraday price action much more clearly than a daily chart view-
Recognizing that you don't want to react on any impulse reaction higher- On the initial 1st reaction, followed by a period of several days with price ranging above the swing low-
The 2nd reaction was a gap open higher - a bit of a decline- but a higher close- This looked like a resumption of the uptrend was in the works- Price then sold off- dropped back into the horizontal support for 1 day- broke lower, and provided a new lower 1st reversal-
That failed to hold- a 2nd - 2nd reversal looked very similar to the initial reversal-but it then went lower the next day-
In the past, I would have raised the stop-loss on the close below the ema- and would have stopped out as price opened lower. Using the major lower swing low - I modified and set a stop-loss below that level at $63.00
The May 13 pullback becomes a higher swing low on the fast chart-
Today's May 14 move closes higher- but the trade no longer deserves the wider initial stop-loss- at $63.00 I will raise that stop to under the more recent swing low- and raise the stop to $64.00- Why does it no longer "deserve' the wider stop? Because price action is weak on both 2nd reversals- This is a possible sign of lack of value buyers stepping in with any conviction- And- a drop in price below the recent swing low suggests that the trend is more likely lower than higher in the short term-
$64.00 becomes a higher level stop-loss than $63.00.
The higher stop-loss assumes price will start trending- higher highs- higher lows. Well, at least not violating the recent swing low that was higher- than the 5.6. low-
If price goes below this swing low- It would appear to be time to be short.....or to step aside .
Looks green across the waters today as well- and while the markets are skeptical -perhaps-
this consolidation range will not push back to the recent lows.
I have some freed cash in the IB account-and I am considering adding some positions-
and - since today's bullish price action in many stocks leaves another swing low behind- I will consider tightening some stocks - likely just below the recent pullback lows-
HEDJ may be a good example of attempted market moves higher, 1st reversal attempts that fail, go lower- and then put in a lower reversal.
At some point- and the wider time frame view may be the most valid at this juncture-
How much of a pullback can one sit through- particularly if higher attempts fail to gain traction?
With recognition that i am at a higher % risk on most trades- I think it's appropriate to reduce some of that Risk- What looks weak? Using the prior HEDJ chart for this example- updated-
A 'pullback' from an uptrend often will give a retracement- and -on a faster chart- that 1st attempt to move higher looks bullish- but may be premature- My HEDJ CHART EXAMPLE
The 2 hr faster chart illustrates the intraday price action much more clearly than a daily chart view-
Recognizing that you don't want to react on any impulse reaction higher- On the initial 1st reaction, followed by a period of several days with price ranging above the swing low-
The 2nd reaction was a gap open higher - a bit of a decline- but a higher close- This looked like a resumption of the uptrend was in the works- Price then sold off- dropped back into the horizontal support for 1 day- broke lower, and provided a new lower 1st reversal-
That failed to hold- a 2nd - 2nd reversal looked very similar to the initial reversal-but it then went lower the next day-
In the past, I would have raised the stop-loss on the close below the ema- and would have stopped out as price opened lower. Using the major lower swing low - I modified and set a stop-loss below that level at $63.00
The May 13 pullback becomes a higher swing low on the fast chart-
Today's May 14 move closes higher- but the trade no longer deserves the wider initial stop-loss- at $63.00 I will raise that stop to under the more recent swing low- and raise the stop to $64.00- Why does it no longer "deserve' the wider stop? Because price action is weak on both 2nd reversals- This is a possible sign of lack of value buyers stepping in with any conviction- And- a drop in price below the recent swing low suggests that the trend is more likely lower than higher in the short term-
$64.00 becomes a higher level stop-loss than $63.00.
The higher stop-loss assumes price will start trending- higher highs- higher lows. Well, at least not violating the recent swing low that was higher- than the 5.6. low-
If price goes below this swing low- It would appear to be time to be short.....or to step aside .
glad to be a participant.