Seriously… who would buy here?
Ok… enough talking in general concepts. I always get in trouble when I do this, because someone will email me including a chart which shows an exception to the rule.
Whatever!
Generally… it's not wise to buy in these areas.
And this brings us to the point of the article.
Consider it a "rule of thumb" for finding good trade locations.
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One way to find areas on the chart which may show potential for a short entry, is to find the places on the chart where you think, "Who would BUY here?"
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One way to find areas on the chart which may show potential for a long entry, is to find the places on the chart where you think, "Who would SELL here?"
Let's look at a trade based upon this idea.
We'll start well before the trade, as price pushes off the lower support level.
Who would buy after a long single-leg over-extended price move into resistance?
Certainly not me.
As always, this is personal opinion only. So feel free to do so if you think it's a good idea. After all, I need someone on the other side of my trade. 🙂
Happy trading,
Lance Beggs
Awesome Sir !!
You have totally changed the way I trade.
And guess what, I have become reasonably profitable trader for last 4 months continuously. Before that I was in “breakeven” stage for last 2 years!!
Thanks for changing my life
Sunil Manohar
Sunil,
That is awesome! I’m so pleased to hear you’re doing well in the markets. Congratulations. And keep up the good work! 🙂
All the best,
Lance.
Hello Guys,
Nice lesson lance as usual , and congratulation for sunil to be profitable trader for the last three month , and I hope that I be profitable too.
thanks
mohamed
Thanks Mohamed! 🙂
Ty. Mr. Beggs. How do you define “long push” for each instrument ? Typical impulse move for that instrument?
Pat, there is no fixed rule for what should be a long push. It will vary depending upon the context. But essentially, it’s a swing longer than the typical swing for that instrument at that time. You’ll know it when you see it. If it’s not obvious, then it’s not a long swing.
Cheers,
Lance.
Great post Lance, I have made it mandatory to read your newsletter post everyfriday. I have not been disappointed. I have watched all your unfinished YouTube series aswell great. Very Helpful! UK
Thanks Moses! Much appreciated. 🙂