Another misconception is that scalpers don't follow trends or use trendlines. I am a scalper that uses trendlines. When the question is asked "Is the Rally almost over??", my answer is YES based on the trendlines that I use. If trends are fractal in nature then so are trendlines, rallies, suppport, resistance, pivot points, moving avgs, etc. Therefore we'll all have different answers for the same question and as incredible as it may seem ... we can all be right or we can all be wrong based on the measurements of time that we're using.
I'm not sure I understand. If you are a scalper, then, by definition, you are trading very short term time frames, right? The trendlines you use to scalp, they would be drawn on what kind of a chart, a 1min-5min? Longer? Surely you're not scalping based on trendlines drawn on a daily chart? So, when you say "my answer is YES based on the trendlines that I use", what sort of a timeframe do these trendlines refer to? I mean, you're not really suggesting that a breach of a trendline on a 2minute chart is sufficient cause to think that the rally, on the dailies, is over?
Yes, I am a scalper that uses trendlines which are drawn on very short term chart, not a daily chart. The rally, trading range or any indicator that I use would be based on that same short term time frame. I keep a chart of the longer term time frames with associated trendlines also. What happens on the short term time frames doesn't really affect the longer term, IMO.
Dick Arms Market Pullback Has Arrived Signs suggest a few days of rallying, but a decline looks imminent.
I sure want to believe the rally's running out of gas! But, it just keeps coming on. Makes no sense, none, . . . .
Just trade what you see not what you think... Markets never make sense... they are not humans.. nor do they have any logic.... Trying to reason out the markets... is like having lunch with a psychopath.... --MIKE
That was an important support area we are bouncing off... For now bulls win... I will go short when(if) we break support --mike