Yesterdays sentiment that these past few days has been liking to a corrective feel is an understatement. I read yesterday on a tweet sent out and is what I think separates good traders to bad ones.
"Most times, OS conditions are opportunities one can have in the market, but in a Bear Market, this sentiment "never" works".
There is a reason this statement resonates for me the most, and what this blog is all about. Since this blog started, I have emphasized the importance of these OB/OS conditions and how to use them to the most potential. Not only are these good at recognizing extremes, but with the right mindset, we can also see where the trend is at. I may on occasion show other indicators and how they behave, but this blog is about simplicity, and this quote reflect that technique we use and the results we are after.
We do not know what will come out of the FEDs mouth in the coming days, but if we know what happens after then we are able to plan and conclude if the words were bullish or bearish to the market before a long move occurs and you either entered later or exited too late.
As it stands, the ST has not moved from its downward direction, so this is the direction we must follow. The intra-chart is also downward but in a bullish phase so we should look for signal to continue downward tomorrow into a bearish phase for prices to continue lower and perhaps to a LL. The immediate target is for 1800, but will depend on how impulsive and OS we are at this point.
SEN: Bearish
ST: DOWN
PA: DOWN
Note: Perhaps the inability of price to push up strong is because of our Price Acceleration sentiment to the downward position. This would have to be a study on its own, but it's an undeniable conclusion by eye.
No comments:
Post a Comment