Again I see so many people click the “buy” botton, “it came down so has to go up” trading…
I personaly could not care less and I make a lot of money on this market by trading it in the right direction.
But I have ~70 people following me and some of them write me nice words and ask for my opinion.
I can not go into great detail on what I see when I look at my trading Desk (Intermarket Correlations), and I try to keep things very simple.
So today, for all the people who punch that “buy” button because a 10 Minute Youtube Video told them so or whatever… this is for you.
I keep this very simplified, ok
please look at where the price is in the bigger picture, simply look at the naked chart.
Price trades in a very stable downtrend. It just crossed the ema50 (white) and ema 20 (green) to the downside, showing the bounce off the upper downtrend channel. The RSI is NOT “oversold”, the price is NOT “too cheap”, it just crossed the 50 and it’s pointing down with much room to go.
Price is testing the current Demand zone (white) for the third time. S&D Traders do trade a zone like this twice, never three times.
The zone is slowly exhausting under agressive selling, there are not enough pending Buy Orders to be filled by agressive Selling, so the price is likely to move down to the next batch. I also drew the Fibonacci Levels so you can see how the price reacts around these Levels. Watch the priceaction, when the 50% breaks, your next reasonable target where you can expect Profittaking of Sellers (I’m one of them) and serious Sellers exhaustion meating Pending Buy orders is around the 61.8% (red).
And again, look at the ema’s.. very healthy downtrend, unbroken, RSI has room to go, the price is not “too cheap” for Sellers.
And finaly: the Sentiments…
…when everyone is screaming “buy”, it is a good time to Sell.
95% of all Retail traders lose. Why would you want to be one of them?
When the Retail Sentiments are Long (they are), please click the other button, you will make money.
Do not run with the herd! The herd are Sheep. Lions lead, Sheep follow and they are lead to the slaughterhouse… Be a LION!
It stands true for ALL timeframes. When the overall direction is Short, trade Short… common sense…
10 Minute Scalping Chart
Blessed is the man who studied John Murphy and knows his markets
I hope this helps someone out there…
Stop buying this…. be smart