fade or follow new highs/lows?

Discussion in 'Trading' started by IronFist, Jan 5, 2009.

  1. intraday price makes a new high. is this a signal that there is a strong uptrend, or do you fade it?

    intraday price makes a new low. is this a signal that bears are in control or do you fade it?

    (assume its not news or fomc day or whatever)

    same question for daily charts, too.
  2. lol wtf who gave this thread 1 star before there are even any replies? :wtf:
  3. Buy new highs

    Sell new lows
  4. Generally speaking - it often can depend a lot on the trend and where S/R is.

    In an uptrend, buy new lows, in a down trend, sell new highs.

    In an uptrend, expect resistances to fail, in a down trend, expect supports to fail.

    There are no hard fast rules.

  5. oh geez maybe i didnt ask the question right.

    i meant High of days and low of days.

    so you'd never have a new low (of day) in an uptrend.

    my bad.
  6. Brandonf

    Brandonf ET Sponsor

    Either one will work just fine as long as your consistent and take the time to study the traits of the ones breakouts that are succesful in case your going to buy them or that fail in case your going to fade them. Of course you should also know the traits of the ones that fail if your going to be a buyer, but you should know still know the traits of ones that work out more so in that case.
  7. If you buy you better be ready to jump out. This rally is all about the stimulus package.
  8. Nope. The main reason why stocks are surging is because of the mass realization by funds that the recession is very shallow.
  9. Good traders don't ask why.
  10. Surely this thread is not a sign of an EliteTrader. Just another clueless amateur needing help and confused in the shuffle.
    #10     Jan 6, 2009