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Many traders like to find ways to short the tops and buy the bottoms
It is vital to understand when a move is not playing
out as expected
Never a warning shot given as price
approached support that we'd lose the level
Something you'd expect to see given
the context of the play
WHAT IF THE PIN FORMED AND PRICE DIDN'T MOVE?
BATTTLE!
Important information?
We get the obvious pin bar and what would you
expect to happen?
Would you expect consolidation or would
you expect clean rejections like the previous ones?
These are types of questions you need to
ask in real time
Reading the price action would alert you that the bulls are in jeopardy and a long play could get painful
Price action was not pointing towards upside at the point before the
news release
CANCEL
I read it as a failure test of lows (not a “fakey”
Will it turn and take out the long heavy
candles that formed?ANSWER: It slammed back the next day
Let the price action tell you the story and you
just read along
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