Hi Everyone
No upside follow-through from Friday’s Doji bar on the main indices, and no upside follow-through from GS either.
From a trading standpoint that’s fine as none of our breakout points were taken out anyway, so it’s a case of no entry, no losses. It’s one of the great advantages of our way of trading breakouts from flags, channels and even reversals. We never try to second-guess, and therefore when we’re wrong we rarely get hurt.
Also, it’s worth pointing out that the Dojis I mentioned on Sunday evening were NOT hitting 20+ day extremes. If you’re signed up to my TradeTheBanks course you’ll know about this particular rule. The reason for mentioning the Dojis on Sunday was that the three major indices had Dojis at the same time.
S&P Weekly Chart:
GS Weekly Chart:
Summary:
Another day or two of consolidation and we’ll be looking at bear flags on the daily charts (as well as the weeklies), with another push down being likely.
This is the ultimate way to trade safely and opportunistically. You’re fluid, and able to anticipate without committing yourself until the chart plays out. It’s not time consuming, it’s very purposeful, it’s low risk and it makes great returns when the market co-operates.
More later this week.
All the best
Guy
To learn more and have access to the OVI visit my Private Traders Club area.