Do you always allow the result of the prior trade to determine how you will trade the next occurence?
It would normally not bother me but as I know that people are watching this journal I want to go for a good straight run of profitable trades. Also bear in mind now that since my bias is currently bullish to go counter trend would not be worth it in terms of risk and reward. Even though I am anticipating a correction if it is going counter trend I am not expecting a deep one so there is not very much reward for risk taken.
Useless predictions file: If I could short EYEG around 15-16 tomorrow I would. Unfortunately its not on the easy to borrow list :-(
I am now quite happy to say that a top has formed here at least providing nothing changes like yesterday... Still looking for a long but will have to wait for this correction first.
Let me just clarify that even though I believe a top is forming I do not think we will see much in the way of downward pressure more likely sideways than anything. This is because of the strength of the underlying longterm trend which is currently bullish.
It was looking decent at first and I was not expecting the gap to fill as the buying was quite strong. Since my entry we seem to be fast losing strength and momentum so I might take a small hit and wait for a sharper pull back. The problem is with such a strong bias on higher time frames any pullback won´t offer much due to the bullish skew. Also I have noticed if you don´t get a decent correction for a day or 2 the upside can be limited. The more I look at this chart the more I hate last Thursdays trade I literally had the bottom but did not like the wayh it pullback against me. In theory I should have just closed my eyes and held but guess I need to follow Reardens advice more closely.