to follow up on your question and show you the mindset, here is an example of a possibility ---
we have 1268.00 and 1270.00 as minor levels with 1273.00 as a major level to the upside going into mondays trading. if price trades up through 1268.00 and 1270.00 with new "responsive" buying then i would expect there to be a higher probability of a responsive buying rally up and through 1273.00 {after at least one bounce down that can be scalp traded at 1273.00 prior to a breakout above this level}. if i have my remaining 3/4ths swing trade position with a 1271.00 cost basis and i have 1268.00 and 1270.00 busted through with responsive buying, then the obvious trade plan choice would be to flatten at or below 1271.00. at this point i would be looking for one of two things -- first would be a breakout above 1273.00 {we would take that long in Billy's room on the breakout with responsive buying} or a rejection of this price level with any drop below 1268.00 on responsive selling as the trigger to re-enter the swing trade short. if it goes sideways after rejecting a 1273.00 breakout then i would just sit flat waiting for price movement to make my decision for me.
so you can see here how crucial these levels are in the decision making process while managing the swing trade --- hope this gives you a better understanding of the process.
we have 1268.00 and 1270.00 as minor levels with 1273.00 as a major level to the upside going into mondays trading. if price trades up through 1268.00 and 1270.00 with new "responsive" buying then i would expect there to be a higher probability of a responsive buying rally up and through 1273.00 {after at least one bounce down that can be scalp traded at 1273.00 prior to a breakout above this level}. if i have my remaining 3/4ths swing trade position with a 1271.00 cost basis and i have 1268.00 and 1270.00 busted through with responsive buying, then the obvious trade plan choice would be to flatten at or below 1271.00. at this point i would be looking for one of two things -- first would be a breakout above 1273.00 {we would take that long in Billy's room on the breakout with responsive buying} or a rejection of this price level with any drop below 1268.00 on responsive selling as the trigger to re-enter the swing trade short. if it goes sideways after rejecting a 1273.00 breakout then i would just sit flat waiting for price movement to make my decision for me.
so you can see here how crucial these levels are in the decision making process while managing the swing trade --- hope this gives you a better understanding of the process.
