Ah. Well. I hadn't thought about it but I suppose so. It was a strange situation. A decisive bounce off anticipated support then zip for a half hour, after which it plunges 3pts and immediately rallies, almost as if somebody made a bad trade. I don't know that I'd even call it a secondary reaction. In any case, if one exits there because he'd been thrown by the action, he can always re-enter when price exits the top of that range. Even on a static chart one can tell if an entry is right by how price behaves. See how it rockets there? But it depends on how one prefers to manage his trades. I prefer to leave them alone (LITHA) as much as possible. But others freak if price comes back at them so much as a tick.
(Slightly off-topic, but since you bring it up...) Just curious, what keeps you so prolific in these forums after well over a decade of participation? I can think of a few possible reasons but I don't want to bias your answer.
Yes I understand. For me I'd rather see price not fall back toward the mean. Why? I dunno is that fearful? Since we moved sideways btw 80 and 84 and then "broke down" I'd be skeptical. However that "dog" would allow for re-entry. Sort of reminded me of a shakeout of sorts. Price then traveling as fast as it did back thru 80-84 confirmed my opinion.
More interesting than TV. But it's largely a matter of paying it forward. To die without passing any of this on would be such a waste, particularly since there is always something to be explained, and so few people who are interested in this material, much less understand it.
Nearly all of you have different risk tolerances and look for different things than I do, with the possible exception of 40D. You may all see the same ranges and the same breakouts and the same double tops and bottoms and HLs and LHs, but then what? I demonstrated how to surf back at TL, but that requires far more concentration than I can maintain for very long. I'd much rather incorporate AMT and LITHA. So once I was in this morning, I wasn't concerned about doing much as long as we kept exceeding those daily swing highs. When price choked at 4300, it was not unexpected, and when we double-topped, I exited and went short. But then we ended up in that frigging range for an hour. But as for your question (pardon me), the thrust down is not nearly as important as the violence of the rejection and the recovery, almost as if, as I said, the trade was a mistake and somebody was scrambling to recover. Those violent moves don't occur for no reason at all, but the typical trader fears them and waits for the dust to settle. Depending on the context, this is nearly always a mistake. If one has a range and price busts out of it, be there. Take it. What's to lose? A couple of points?
Good stuff thanks. Focusing on the flow makes this so much more interesting lol. I feel like a "tape detective."
I suppose I should also say that when that situation repeats and you get all cold all of a sudden and even light-headed, then you're not ready to take any trade at that point. So don't. Just stand aside and observe and take your notes. With each occurrence, the fear will lessen, and eventually you'll be able to jump in and take the trade knowing full well that the world will not come to an end, that your account will not be wiped out even if the trade backs up on you and you get out of it. As long as you have your catastrophe stop in place, you could even lose your internet connection at the same time and you'd survive.