btw guys i wanted to show an example of this happening on a chart where it doesnt necessarily work, so i looked back through here to see if i could find another example of this kind of channeled chart, where at a certain key point it just rejects going lower/higher.
Check this one out on CIEN, my initial support area was 26.50 cause that was previous resistance.
But do you see that 1 red bar right before 10:00 where it tries to go below 26.75 and just gets rejected?
In my eyes, the way i read that kind of thing is someone out there with size is willing to buy it up, and take anything they can get below that level, so it tests 26.75 again a couple more times, and that happens to coincide with somewhat of a trendline, so when it bounces it at 26.75 after a couple more tries, i re-enter long, then it rejects it again at the top of the channel so i dump, and im out.
But you hear me talk all the time about these "Stuff" moves, and what im talking about is it either getting stuffed in a channel, or stuffed on support/resistance, or stuffed at a round number, (.25's .50's, or .00's) where there is someone willing to buy/sell as much stock as someone is looking to feed them at certain numbers, so the stock just cant get above or below that number.
This is where the journal has served as a useful tool too me, this shit is just second nature too me after almost 15 years of trading, but in real time my brain sees that going off and its just second nature, its a part of reading the tape in my eyes.
In this case though, it didnt work, so i didnt add to it because the channel never broke on the top side.
So instead i just took a tiny profit on it on a starter position, but normally id be looking to add if it got through the top of the channel, and then move my stop to breakeven, somewhere in the middle of the channel if the top doesnt break.
