Trading Log - 06Feb2009
Previous candle, long wick then another wick couldn’t close above 2800 again... so it means bulls ran out of fuel... it didn’t stay there long. Start feeling the market rhythm... instead of watching candles and patterns n stuff you start feeling the order flow. See how it paused there.
Buyers coming in on the support (previous little range), so they keep buying and others keep selling and you watch to see who runs out of fuel. Understand what’s happening at the price level and if say the bears run out of fuel and you are short you can get out easily without wondering and berating. At the same time though you’re looking back and finding the next support or resistance level above/below so you can see how far it could still go etc.
Well firstly they struggled to push right over 2800... So there was some selling pressure... then the big break candle... I always watch the break candles and if it pauses quickly I fade it right then and there.The confirmation came when the bar closed below 2800... And the next candle could not break 2800 again. It really is that simple, you just gotta be looking at it instead of at other crap.