Trying to put it into a one liner…: An over-extended chart, both on the daily and intraday, trying hard to break a whole dollar point in the afternoon = odds of a crowded trade = odds of a failed breakout giving everyone a reason to sell
what do you think? have i understood the setup correctly?
thanks for taking the time to explain with your vids 🙂 hope you have a good weekend urself
Yes that is pretty close, very close, I think I covered it as well. It is when there is that abcd looking chart, and its holding at a higher level all day, sometimes its just TOOO perfect and looks to breakout as well, but with those others things coupled, that’s what makes the trade what it is. Sometimes when things are just too good to be true (ie the perfect abcd chart with likely hood of squeezing) they just aren’t.
got it – thanks ! 🙂