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08/15/2018 Market Recap

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Cobra
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08/15/2018 Market Recap

Post by Cobra »

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Cobra
Site Admin
Posts: 58337
Joined: Sat Feb 12, 2011 10:29 pm

Re: 08/15/2018 Market Recap

Post by Cobra »

SUMMARY:

Be patient sometimes pays well, today was a good example (unless you scalp of course): It looked like a bloody downtrend day in the morning, then a 2 legged rebound, especially the 2nd leg looked like bears were over, then came the 2nd test of the low before the trading reversals setup was finally triggered, so doing a swing trade today would be very tricky, even with very large stop loss, it'd be very hard to hold.


NOTE:

Believe me, I was tempted to call downtrend day several times already by here (viewtopic.php?f=2&t=3021&p=258102#p258102), gladly I decided to wait a little bit longer. It meant a late entry but still better than being trapped if wrong.

Reminded the potential short setup here (viewtopic.php?f=2&t=3021&p=258108#p258108) which actually was tricky because if shorted the L2 as illustrated below, the target wasn't enough for 2x, instead, you might be stopped by the 2nd leg up depending on where was your stop loss which usually is the first rebound high so likely would be stopped out.
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And the 2nd leg up looked very strong which might be enough to convince people that the low was in for today.
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Gladly I decided to wait a little longer. I should've put a comment saying I had no idea whether the low was in or not though. Sometimes by saying "don't know" might still help, today was a good example.

Anyway, reminded the trading reversals setup here (viewtopic.php?f=2&t=3021&p=258134#p258134).

And the setup was triggered (viewtopic.php?f=2&t=3021&p=258141#p258141).

In the end not a bad close for bulls on a sharp morning down day.
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DISCLAIMER:

The trading log above is meant for myself only which main purpose is to help improving my market sense.
  • My blah blah about how the market would go in the next dozens of minutes everyday in this forum, is a way to force me to focus on the market, because by speaking loud, if the prediction is wrong, I'd be embarrassed, which of course I'd like to avoid as much as possible.
  • Day trading is not my strongest point. Just for the same pattern, it can repeat frequently on the 5 min chart while on daily chart it may take months to appear once and another month to know whether the idea of trading such a pattern is right or wrong THIS time, so practicing on the 5 min chart is a fastest way to learn to trade.
  • Day trading inevitably would have good days and bad days, it's a part of the game. If I always have good days, it means I'm either lying or already the richest person in the world (then why I'm still trading?), so please don't blame me for making any bad calls. The log is for myself only, not meant to be followed.

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