WTF Chart of The Day: What Separate Amateurs From Experienced Traders On a Trend Day
By Lawrence
Today (Jun 12, 2014) US stock market dropped in a directional manner.
Red down arrow marking the start of the day.
The horizontal blue lines highlight the range of Monday and its downside expansions are highlight in other colours.
The rejection of Monday low from Wednesday tells us today 100% expansion of Monday’s range is very likely. Even a breakdown to 200% expansion is likely. It is pure STOPD play.
Trend channel breakdown also points to a drop to an expanded level below.
Yet, all day we see in various trading forums and real-time stock tweets that people kept trying to pick the low of the day as if they have no idea what a trend sell day is. The selloff has to happen although majority of traders refused to believe it. It is funny how they raised all kinds of conspiracy theories why the selloff took place.
Experienced traders who have learned to let go of their egos long time ago know better to not picking bottom all day on a day like today. Being able to sense the difference in price actions from the prior trading days is not a special skill. It is just being observant.
There was a point in time I tried hard to see if I could persuade new traders and hotshots from making such mistakes. I have given up since because I have learned that it is a waste of my time on people who refuse to accept their ignorance. I find it much more rewarding to help those who seek better understanding on how the stock market really works.
Lawrence's Comment
Recap
Y+1 cleared with strength gave us Y+2 quickly. Y+2 rejected resulting in a sharp fall back down to near Y-0 but 100% range expansion successfully stopped NQ from going ...
Overview
Emini overnight range 1948.00 up to 1968.75 (at 9:05 am)
Overnight Midpoint 1958.50
Day R1 1929.25
Emini S&P is now trading at the top part of its range with a ...
Lawrence's Comment Recap Y+1 cleared with strength gave us Y+2 quickly. Y+2 rejected resulting in a sharp fall back down to near Y-0 but 100% range expansion successfully stopped NQ from going ...READ MORE
WTF Chart of The Day: What Separate Amateurs From Experienced Traders On a Trend Day
Today (Jun 12, 2014) US stock market dropped in a directional manner.
Red down arrow marking the start of the day.
The horizontal blue lines highlight the range of Monday and its downside expansions are highlight in other colours.
The rejection of Monday low from Wednesday tells us today 100% expansion of Monday’s range is very likely. Even a breakdown to 200% expansion is likely. It is pure STOPD play.
Trend channel breakdown also points to a drop to an expanded level below.
Yet, all day we see in various trading forums and real-time stock tweets that people kept trying to pick the low of the day as if they have no idea what a trend sell day is. The selloff has to happen although majority of traders refused to believe it. It is funny how they raised all kinds of conspiracy theories why the selloff took place.
Experienced traders who have learned to let go of their egos long time ago know better to not picking bottom all day on a day like today. Being able to sense the difference in price actions from the prior trading days is not a special skill. It is just being observant.
There was a point in time I tried hard to see if I could persuade new traders and hotshots from making such mistakes. I have given up since because I have learned that it is a waste of my time on people who refuse to accept their ignorance. I find it much more rewarding to help those who seek better understanding on how the stock market really works.
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