How would you like to be “Done for the Day” less than 30 minutes from the open?
The first thing you have to ask yourself is – What is the trend? On Jan 8, the answer was clearly “Down”. So, of course, with down we are looking to sell short with permission.
If you will look at the chart you will notice the 1st arrow is a weak bar on price (closing well off the high). A volume (increase) = effort but no result = weakness. There must have been professional selling on that bar. And on that bar looking to the top of the chart one can see that price is overbought.
So inevitably “Price” finds resistance at 2 points of inflection:
1 – the trender
2 – moving average
If a trader missed the entry, the market provided another opportunity on the 2nd red arrow bar – also a weak bar on volume. All the criteria were met to sell short, and the market told you when to exit based on stopping volume which occurred 6 points from high to low.
So I ask you again, “How would you like to be DONE for the day within the first 30 minutes of the open?” Well yesterday myself and my students were done for the day 21 minutes into the trading session.