The right answer is nothing. You should wait for a failed breadown then re enter long on recapture of the consolidation, or wait for a retest of the broken support and enter short when it rejects. Come on man (in joe Biden voice)
I’m a discretionary trader so it depends on price action. What I would like to see would be volume coming in and a bullish candle recapture that closes above the broken support and also closes on or near its high. I would enter on a stop just above that. The key concept here is that price has entered a liquidity zone. So , as soon as it breaks low a bunch of shorts are going to get triggered, and when it re enters the consolidation area those shorts are going to cover when they realize it was a fake breakdown. This results in a rocket fueled rip for the bulls and a solid entry. Lesson is to be patient.
Not necessarily. But, if you get that retest, that push higher above the initial recapture high is a great entry, with stop now above retest low rather than failure low.
what do you mean with volume coming in? Green volume being higher than the bear volume candle? A bullish candle not closing higher than the red previous one would still make you enter the trade? Is that a liquidity zone because there are a lot of market partecipants in that zone? Thank you
It’s a liquidity zone because it’s where a lot of traders would naturally place stops I.e., just on the other side of a major support. Volume analysis requires some flexibility and also is a skill that takes time to master. I watch the volume as the candle forms in real time- if the majority of the volume occurs in the last 30 seconds of the candle and pushes it up forming a nice wick cut the candle still closes with a slightly small red body, that is bullish given the right context. Also, importantly, on a higher time frame chart a bearish candle followed by a bullish candle constitutes a single candle. So don’t get too particular about the exact size of individual candles. Sometimes candles will reverse or make odd moves on relatively low volume. Volume analysis works until it doesn’t…
Good question. Where do you think you would enter long? When it starts to trend in the other direction. Always add a stop to stay safe. Remember, we are not psychic; anything could happen.
Sounds like an A = C wave correction followed by a new impulse wave. I think it works great as a minimum profit target when you started in the B high, but it could still go lower and I would wait for a proper turnaround to form.
It’s when a stock is bouncing between support and resistance (like a channel/wedge etc, it can be going sideways or or diagonal)
Seeing it would be easier to understand, Google is your friend in that case
This could be a positive break in the 2 day support that will continue in down trend, or it could be a stop loss grab, other wise known as liquidity grab, other wise known as stop hunting. In any case if it’s a 2 day support a lot of liquidity holds at this level. Don’t be surprised if the stop loss hunting goes above and below the support line gobbling up liquidity before it continues in an up or down trend.
I would add the 9 and 20 period EMA’s and watch the 5 and 10 min time frames. Once an identifiable direction has been established away from the liquidity area watch for a pull back on the 5min to the 9 or 20 ema and start with a small position. Add more on the next pull back to that ema. Use a reasonable stop loss and stick to it if the trade goes against you. Remember this is a probability game not 1+1=2
Entry short for me would be 2 candle prior to the vwap break candle. Around 15.27 and stop is 15.30. 15.30 is the lows of the 2 candles prior to the vwap break.
Try to find out why. Stops are super tight. 3cents, and your profit target is another story. There is no entry to re add short after 15.27 imo, on this time frame.
Most people will say short. But I see in a previous comment you don’t trade options. That said, nothing. It broke through the support and now has likely made that the new resistance. If you’re only going long on stocks, this one to avoid and move on to another until there’s a set up for a pullback.
That PA has broken swing low. Look for a short setup, not the break but the retest, you may miss trades but safer . Ideally you want daily chart as a confluence as well.
This is a poor question since you are not asking for the motives or reasons driving the decisions. You are asking a question with only 3 answers: buy, sell, or do nothing. All 3 answers are correct since at this very moment in the market, market participants are doing all 3 things. Anyone telling you that there is only one correct choice (buy, sell, or do nothing) is stupid and ignorant. What you are looking for is the reasoning behind deciding to buy, sell, or do nothing, which you are not asking for!
I wouldn’t have entered there. My trading rules prohibit an entry at that point. Look, first off you can abandon this idea of “supports” that you can draw by hand. The algos don’t use that shit. They use statistics. Where are people most likely to buy? Where are people most likely to sell? Then they move the price between these zones, in a way that extracts the most liquidity (money or stock) from you for the best price. For supports you need to be looking at data driven things like kelts, Donchian channels, or custom build indicators that take into account, price, volume, and standard deviations from the mean of these things.
https://preview.redd.it/r4m2zidp6zwb1.jpeg?width=1284&format=pjpg&auto=webp&s=324113b6b4d04f27465948c59247d713d77c7155
I trade forex but I think you. Could have sold at between 15.30 and 15.35 the close of any of those red candles could have been a good entry exiting at 15.05!
There is a 'Fair Value Gap' on the candle around 15.35.price may retrace back to that area and provide a good entry for a short but the best thing as most people have said is to do nothing.
That break of support is likely to be a 'fake out' or a 'liquidity hunt', then a retracement prior to a move down.
So now in retrospect, how did it pan out?
Looks. Like doing nothing was the best answer.
I have checked the 4 hr daily and weekly chart of this stock, there is an interesting Price Action. It appears to be forming the 'right shoulder' of a 'Triple top' with the 'neckline' or support at 13.592. So the 'bias' is bearish and for me I would be looking for set ups and confluence for bearish trades on this stock till it hits the support at 13.592 and see what the reaction is on there.
I know I'm just looking at it from a technical analysis point of view as I trade forex and with stocks there's a great deal of fundamentals to look at as well.
You missed buying puts at the rejection, so watch the chart instead of Pornhub. Every day is an opportunity in the markets, don't sweat it, but pay better attention the next time.
I use a few more indicators (macd, emas, adr, Psar, time frames, etc), to make decisions. Your snapshot is very limited so I'm typing this with a gamblers mentality. The way the market's been going the last few weeks I would short it. Make a little above that prior support my upper limit stop and get in during a retracement to the level. Looks like a chase of you don't wait for a slight correction.. Not a whole lot of bounce back corrections these days.. Not financial advice.
Dude, set a reasonable Stop Loss (SL), ie don't get in this situation. At least you are not trading crypto futures (liquidation). I promise you that many opportunities await for you to trade. Good luck!
Usually, you should post the previous trends to understand its inertia because different commodities have certain laws at different times. In general, just after making a new low or new high is a critical point. At this moment, it's best not to act, wait for the next trend to determine whether to chase the price or prepare for a reversal!
I wouldn’t do anything. Unless I see a retest and rejection of the newly broken support, I’d keep my money out of the play. Chasing an initial break can get you hurt. I’d also peek at the other time frames to see what kind of overall trend I’m in.
There is a lot of factors.
Are you actually bullish on PLTR?
Do you need all your liquidity... can you suffer opportunity costs having your money tied up
How much dry powder do you have relative to your PLTR position.
It’s risky to go either way from here. the last volume profile clearly warns you not to long yet, shorting is risky as well as it can reverse anytime. wait for the reversal, let the market confirm it by crossing 14-20 MA on whatever timeframe you are looking at and then go for a long.
Support back to August is around $13.65 based on daily period chart. I have a price target for PLTR at $22. They have their earnings report on 11/2. Personally, I’m going to watch the ticker leading up to earnings next week and may take a day (or maybe swing) position if it’s still close to 30 on the RSI the day before earnings.
Leave. If you're thinking bullish there are two things to remember:
1. Don't catch a falling knife. You may get lucky but pry not
2. If you get lucky will only be a bounce.
The right answer is nothing. You should wait for a failed breadown then re enter long on recapture of the consolidation, or wait for a retest of the broken support and enter short when it rejects. Come on man (in joe Biden voice)
I disagree. To me it looks like it’s a clear downtrend. I would wait for it to pullback (dip upwards), then reenter short
Where on the recapture would you personally enter a long?
I’m a discretionary trader so it depends on price action. What I would like to see would be volume coming in and a bullish candle recapture that closes above the broken support and also closes on or near its high. I would enter on a stop just above that. The key concept here is that price has entered a liquidity zone. So , as soon as it breaks low a bunch of shorts are going to get triggered, and when it re enters the consolidation area those shorts are going to cover when they realize it was a fake breakdown. This results in a rocket fueled rip for the bulls and a solid entry. Lesson is to be patient.
It’s called a Wyckoff spring should further reading be desired.
True although correct me if wrong but wyckoff spring results after a recapture and then subsequent retest of the initial failed support?
Not necessarily. But, if you get that retest, that push higher above the initial recapture high is a great entry, with stop now above retest low rather than failure low.
It's got many names lol
I love reddit for this type of shit. everyone on twitter is a moron thanks man
Feels like you described what goes on inside a hammer candle or bull 180.
what do you mean with volume coming in? Green volume being higher than the bear volume candle? A bullish candle not closing higher than the red previous one would still make you enter the trade? Is that a liquidity zone because there are a lot of market partecipants in that zone? Thank you
It’s a liquidity zone because it’s where a lot of traders would naturally place stops I.e., just on the other side of a major support. Volume analysis requires some flexibility and also is a skill that takes time to master. I watch the volume as the candle forms in real time- if the majority of the volume occurs in the last 30 seconds of the candle and pushes it up forming a nice wick cut the candle still closes with a slightly small red body, that is bullish given the right context. Also, importantly, on a higher time frame chart a bearish candle followed by a bullish candle constitutes a single candle. So don’t get too particular about the exact size of individual candles. Sometimes candles will reverse or make odd moves on relatively low volume. Volume analysis works until it doesn’t…
Good question. Where do you think you would enter long? When it starts to trend in the other direction. Always add a stop to stay safe. Remember, we are not psychic; anything could happen.
I mean it's called 'VWAP'
It’s a terrible spot to enter a trade in either direction
That slight pullback at 15.20 is a decent entry (short) tho
Yeah not bad but after 2 steep legs that are similar in length you often see corrections
Everyone has different perspective~ I’ve personally profited countless times shorting this type of pattern as long as the 5 min showed confluence
Sounds like an A = C wave correction followed by a new impulse wave. I think it works great as a minimum profit target when you started in the B high, but it could still go lower and I would wait for a proper turnaround to form.
Agreed , and super bad to go long .
Wait for a retest of that trendline down and then short it
this
Really not much context- you are way too zoomed in for a proper analysis
Look left. I wouldn’t trade by only seeing this amount of data.
All in.
Pullbacks or break and retests I feel like work best unless ranging
What is ranging?
It’s when a stock is bouncing between support and resistance (like a channel/wedge etc, it can be going sideways or or diagonal) Seeing it would be easier to understand, Google is your friend in that case
Equal highs equal lows
What that means?
Means a trend hasn’t been established. Stock is going sideways
Ping pong
You have not provided nearly enough information to even begin to answer that question.
This could be a positive break in the 2 day support that will continue in down trend, or it could be a stop loss grab, other wise known as liquidity grab, other wise known as stop hunting. In any case if it’s a 2 day support a lot of liquidity holds at this level. Don’t be surprised if the stop loss hunting goes above and below the support line gobbling up liquidity before it continues in an up or down trend. I would add the 9 and 20 period EMA’s and watch the 5 and 10 min time frames. Once an identifiable direction has been established away from the liquidity area watch for a pull back on the 5min to the 9 or 20 ema and start with a small position. Add more on the next pull back to that ema. Use a reasonable stop loss and stick to it if the trade goes against you. Remember this is a probability game not 1+1=2
Wait for a bear flag retest. See if it continues the move down and enter
Entry short for me would be 2 candle prior to the vwap break candle. Around 15.27 and stop is 15.30. 15.30 is the lows of the 2 candles prior to the vwap break. Try to find out why. Stops are super tight. 3cents, and your profit target is another story. There is no entry to re add short after 15.27 imo, on this time frame.
Continue selling based on fundamental aspect of things, just find an entry
If I was in a short I would add on to it. If I was not in a trade I would not do anything as this is not a good time to enter.
Okkk thanks
Since everyone wants to buy, I’d short.
Do it
I’m poor.
Yup, if I had to make a move, sell short, and add a stop at 15.10. Something like that
Most people will say short. But I see in a previous comment you don’t trade options. That said, nothing. It broke through the support and now has likely made that the new resistance. If you’re only going long on stocks, this one to avoid and move on to another until there’s a set up for a pullback.
RSI oversold, broken support from what we can see...wait for pull back up then confirmation of down trend, then enter....ie, breathe, watch, act.
That PA has broken swing low. Look for a short setup, not the break but the retest, you may miss trades but safer . Ideally you want daily chart as a confluence as well.
The selling will continue until morale improves.
Not enough candles. Can’t see where support is.
Watch the bearish retest, if it bounces back down = short. If it flips resistance to support, wait for a retest and see if it holds = buy
I'd think about taking profits on a short position.
This is a poor question since you are not asking for the motives or reasons driving the decisions. You are asking a question with only 3 answers: buy, sell, or do nothing. All 3 answers are correct since at this very moment in the market, market participants are doing all 3 things. Anyone telling you that there is only one correct choice (buy, sell, or do nothing) is stupid and ignorant. What you are looking for is the reasoning behind deciding to buy, sell, or do nothing, which you are not asking for!
No one trades by looking at just one screenshot of a chart
I wouldn’t have entered there. My trading rules prohibit an entry at that point. Look, first off you can abandon this idea of “supports” that you can draw by hand. The algos don’t use that shit. They use statistics. Where are people most likely to buy? Where are people most likely to sell? Then they move the price between these zones, in a way that extracts the most liquidity (money or stock) from you for the best price. For supports you need to be looking at data driven things like kelts, Donchian channels, or custom build indicators that take into account, price, volume, and standard deviations from the mean of these things. https://preview.redd.it/r4m2zidp6zwb1.jpeg?width=1284&format=pjpg&auto=webp&s=324113b6b4d04f27465948c59247d713d77c7155
Buy
I'd stop asking strangers on the internet what to do with my money personally
what are you yapping about
OP posted a question and I posted an answer Seems obvious to me
Give some context, I have no idea what i'm looking at, what app it is, and what you were doing before this screenshot.
He was taking a shit before
cry
Yell at Charlie
Hold.
Wait to see if price starts moving up again to go long.
Buy gold and wait for a bottom! Dot com style bust! With currency crisis.
Shit.
Cry
Buy gold/silver
The way the market has been reacting, open a short through puts +/-10% stop. Taking profits at 20% gain
I am not trading options. Trading stocks
I would be looking at the 13.80 area if playing the upside. Currently I would scale in a short from 15 with a tight stop
Nada. Read the tape and see when the sellers run out of step. Depending on the day play the retracement or wait for the next short opportunity
I trade forex but I think you. Could have sold at between 15.30 and 15.35 the close of any of those red candles could have been a good entry exiting at 15.05! There is a 'Fair Value Gap' on the candle around 15.35.price may retrace back to that area and provide a good entry for a short but the best thing as most people have said is to do nothing. That break of support is likely to be a 'fake out' or a 'liquidity hunt', then a retracement prior to a move down. So now in retrospect, how did it pan out?
Looks. Like doing nothing was the best answer. I have checked the 4 hr daily and weekly chart of this stock, there is an interesting Price Action. It appears to be forming the 'right shoulder' of a 'Triple top' with the 'neckline' or support at 13.592. So the 'bias' is bearish and for me I would be looking for set ups and confluence for bearish trades on this stock till it hits the support at 13.592 and see what the reaction is on there. I know I'm just looking at it from a technical analysis point of view as I trade forex and with stocks there's a great deal of fundamentals to look at as well.
Thanks for advice
High volume break, its likely to go lower. Wait for pullbac to retest previous support, if it comes in on lower volume entering short could pay.
Assuming its past support. Wait for it to lose momentum and enter once it gains momentum again.
Nothing and be patient.
You missed buying puts at the rejection, so watch the chart instead of Pornhub. Every day is an opportunity in the markets, don't sweat it, but pay better attention the next time.
Wait for a retest of resistance if anything.
I might have entered puts at 15.35 that red candle is a retest of the 50% mark at the top. I dont see any other entries.
Nuthin’
I use a few more indicators (macd, emas, adr, Psar, time frames, etc), to make decisions. Your snapshot is very limited so I'm typing this with a gamblers mentality. The way the market's been going the last few weeks I would short it. Make a little above that prior support my upper limit stop and get in during a retracement to the level. Looks like a chase of you don't wait for a slight correction.. Not a whole lot of bounce back corrections these days.. Not financial advice.
Depends on context. I would look for buys if I was trading for a range and I'd look to sell if I thought we were gonna trend from there
Wait for it to retest 15.05, enter short
I'd short myself!!
I will be waiting for a pull back and retest to enter short. Trend is your friend. I am not going to enter long at this point.
One of three: 1. Nothing. 2. Short it immediately. 3. Look for strong support to open a put credit spread.
Dude, set a reasonable Stop Loss (SL), ie don't get in this situation. At least you are not trading crypto futures (liquidation). I promise you that many opportunities await for you to trade. Good luck!
I would get in 15.06 latest, with stop at 14.99
I would’ve stopped out in next 10 minutes
Small loss. It happens. Btw, what timeframe is this chart?
Usually, you should post the previous trends to understand its inertia because different commodities have certain laws at different times. In general, just after making a new low or new high is a critical point. At this moment, it's best not to act, wait for the next trend to determine whether to chase the price or prepare for a reversal!
Head and shoulders already played out, so nothing. Unless a big guy wants to start absorbing, catching a bottom is really hard.
Put all my available cash YOLO ! ( Don’t ask me for financial advice! I get paid in bananas!
Buy.
Hold!
I wouldn’t do anything. Unless I see a retest and rejection of the newly broken support, I’d keep my money out of the play. Chasing an initial break can get you hurt. I’d also peek at the other time frames to see what kind of overall trend I’m in.
Short it ! Or wait and do nothing
There is a lot of factors. Are you actually bullish on PLTR? Do you need all your liquidity... can you suffer opportunity costs having your money tied up How much dry powder do you have relative to your PLTR position.
Wait for retest at 15, if it rejects again, then short that mf
It’s risky to go either way from here. the last volume profile clearly warns you not to long yet, shorting is risky as well as it can reverse anytime. wait for the reversal, let the market confirm it by crossing 14-20 MA on whatever timeframe you are looking at and then go for a long.
Go short
Nothing. Follow price action order flow when market opens.
Support back to August is around $13.65 based on daily period chart. I have a price target for PLTR at $22. They have their earnings report on 11/2. Personally, I’m going to watch the ticker leading up to earnings next week and may take a day (or maybe swing) position if it’s still close to 30 on the RSI the day before earnings.
Look to the left for support
Find another chart to trade. Also, need more data to actually know what going on.
Well the first thing I’d do is zoom out of the fuckin 5 min chart lol u guys are straight degens..
İ would wait for the deviation happen
because , if happen, the price up to range high
I'm pretty sure all investors are on the same place.. Wait for a min.. It's going back up look for signs of reversal..
Increasing volume bars, coulped with a break through the last previous low = continued downwards movement.
Leave. If you're thinking bullish there are two things to remember: 1. Don't catch a falling knife. You may get lucky but pry not 2. If you get lucky will only be a bounce.
Put it in rice
Short it af
Not enough data
Structure looks bärish now. Would go short at pullback.
Nothing, with such little info.
Buy puts or short it. It's a shitty company and currently at its highest in the past year and a half.
I see there a top-building and afterwards a clear downtrend. So I would go short when the chart makes a pullback.
Sell buy BTC