OK, I hear you ask – what of the larger degree trend when the 3min TS4 unfolded ?
Well, this is where Education comes in and is why I am spending so much time each day with all these examples, day by day, on this Blog, to “teach” you all how to read charts better, and as such become better traders.
If you look at the 15min Chart to the right, (click to enlarge) you can see how the 15min Russell was declining of nice DP resistance, so the only question was where DP support should come in. Yes the “initial or minor” first level would be taken from the “last minor swing” into the high, and yes we did get a minor bounce off that level. But the main DP’s should always be taken from the most important prior swing highs or Lows. And in this example this would have given us a main DP still lower.
So with this in mind, the TS4 sell was after a rally off minor DP support, but we still had the main DP level much lower, so a further decline was likely. But (as I said on my post below), because this was not perfectly clear, the advanced trader should have brought their stop to break-even closer quicker.
Thanks, Steve
Well, this is where Education comes in and is why I am spending so much time each day with all these examples, day by day, on this Blog, to “teach” you all how to read charts better, and as such become better traders.
If you look at the 15min Chart to the right, (click to enlarge) you can see how the 15min Russell was declining of nice DP resistance, so the only question was where DP support should come in. Yes the “initial or minor” first level would be taken from the “last minor swing” into the high, and yes we did get a minor bounce off that level. But the main DP’s should always be taken from the most important prior swing highs or Lows. And in this example this would have given us a main DP still lower.
So with this in mind, the TS4 sell was after a rally off minor DP support, but we still had the main DP level much lower, so a further decline was likely. But (as I said on my post below), because this was not perfectly clear, the advanced trader should have brought their stop to break-even closer quicker.
Thanks, Steve
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