Some review on the internet of the Wyckoff Spring shows that there is generally consolidation prior to the spring. This is a basic part of my method although I had never heard of the spring before. The spring is not evident on the daily/weekly charts and I am still short.
B1S2 trades big trends and uses wide stops. Trend traders generally do not look for reversals, since, as the theory goes, reversals are only evident after the fact.
Happens sometimes (actually most of the time with my style). --- My trade off is missed opportunities in favor of less activity/more time to engage life/hit a grand slam. I am comfortable with this.
looking for a DT and even better a new high to start putting a short line on.. will update on position if criteria is met
Remaining short stopped out at breakeven. Now flat in daytrade account. Shouldn't have moved the stop to breakeven...mistake. My original stop at 1492 was much better. I may re-enter short.
Higher lows and lower highs = congestion, so I have time to chat for a minute. No, a spring is NOT evident on the daily and weekly charts, but they are evident on intraday charts (including the 60 minute charts). It really is not that complicated. First, Wyckoff spring. If it trades below support, and then quickly snaps back, that suggests that there is no supply, no more sellers. If there were sellers, price would not have snapped back. Second, Wyckoff upthrust. If it trades above resistance, and then quickly goes back into the previous range, that suggests that there is no demand, no more buyers. If there were buyers, price would be auctioning up. A trader could make a living trading just springs and upthrusts. Study price intensely when it reaches previous support and resistance levels. When the market tips its hand, hop on.
The breakeven stop is in my view the bane of most traders. I believe it chokes off a trades ability to be extraordinarily profitable. Mind you-I am on a larger time frame, but the principle is still the same.