Stocks Analysis Using Price Action
- Thread starter Gringo
- Start date
Gringo, I see that you show volume in your charts but I do not see you commenting on it. Are you using volume in your analysis at all? TY.
I believe I understand. TY for the reply. I have been using volume, and what I look for is exactly that: "unusual behavior."
After Apples parabolic rise and the break of the trendline. I am waiting to see if a lower High materialises for a long term short trade.
I posted this a few weeks ago and it seems like the time to pull the trigger is near;
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I posted this a few weeks ago and it seems like the time to pull the trigger is near;
Lest this be overlooked, it's an excellent example of "trading in foresight" (as opposed to "here's a trade I took").
Yes, the identification of a possibility of a future chance of a short in case of AAPL was timely and in advance. I was looking at it in a different way. The hinge wasn't so clear to me but the analysis despite that was close enough. The rapidity with which the price rose from 490 to 550 was a bit alarming for my taste. So in my case to get a bit more surety a retracement is required. If it doesn't come this is not a short for me. Someone else with a different plan could have of course shorted at the first sign of weakness at 550. Without tupapa's alert I wasn't actively looking at this.
Gringo
Gringo
Given the rapidity of the rise, however, the decline is/was likely to be as rapid or nearly so due to the fact that there were fewer trades at each level on the way up. This means less "support" on the way down. Therefore, the likelihood of a retracement in cases such as this, at least on the daily, is slim.
