This chart gives you the basic operating trend. the new point 3 is always going to show up. Think about how many peopl left the trade on the first point 3. How many would leave on the second point 3. What you have is an airplane taking off. High rate of climb at slow take off speed. Then when speed picks up the lpane assumes a rate of climb to get to cruising altitude.
Jack, so more people are bailing at the 2nd point 3 to get their profit...so we are short here? do we need more confiramtion? Michael B.
Indicators and volume are missing, but they're not necessary. As long as price isn't breaking the trendline and/or dropping below the last reaction low, there's no reason to exit. To do otherwise on days like this is to cut profits unnecessarily short. The most difficult task is to be patient. Get in synch with the market and let it do its work. All you have to do is watch and wait. --Db
I must learn my ABC's before my 123's and then when i get price action down, I can discuss this better with you senior traders. For now I am struggling. I will practice pulling up charts and learn my 123's for now. Michael B.