Discussion in 'Trading' started by Master Pu, Apr 29, 2021.
On the tick charts or the monthly charts?
You won't get that return on the tick lol
You would be surprised my friend...
Anyway, what time frame are you looking at exactly?
There is absolutely no double top confirmation on the daily, at least for now.
As you probably already know, a valid double top formation has to penetrate the bottom between the 2 tops, like this for example:
Yes, that's true. But waiting for confirmation is like taking jam out of a doughnut. Jokes aside, I usually buy and sell resistance without any confirmations, this is no different just counter trend. I saw something on the daily chart that added validity to likelihood of double top forming. I managed to catch few double tops in past this way. Can't be right all the time, hence the rather lush r:r
Also this, not all confirmed double tops materialise, so how would you then position to catch that trade? It's all a tad subjective until something actually happens.
QQQ + TQQQ did put in a top;
FEB did close down on monthly. BUT as you hinted MAR + APR changed all that..................................................................................[Monthly weekly charts still going up qqq, TQQQhi/low + havent closed APR yet.
I did take profits on TECL + TQQQ this week, but that doesnt mean NQ topped.
Unless you have an excellent backtested reversal system at your disposal, shorting "double tops" in an uptrend is deadly, and vice versa for downtrends.
But anyway, let's see how it goes.
True, that's why we have to test the water first and use small positions at the beginning.
Just wish me luck pal. Hopefully, whatever nuance I saw on the daily chart has been spotted by algos and there will be sufficient distribution to warrant a pullback.
I am NOT calling for the end of the uptrend, I am neither that smart or stupid.
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