That is basic and what amatures believe. There's much more to it than that. Carry on, the markets need ppl like that ...
Maybe there was a strong trend prior to January 16. Sort of like looking at the Russell 2000 for 3-4-5 months, then it moves in one direction with no pullbacks for several weeks. These aren't your father's markets.
If it would be so easy that you just have to buy the breakout at the top, or to just sell the top of a range all the time, it would be so easy or no ? Everybody could and would do it, everybody would be a millionaire and nobody would flip burgers at Mac Donalds or clean public toilets. But it is not that easy. You cant just say "always just buy the tops" or "always just fade the top of the range" and think that you will make consistent profits. You have to bring "context" into play, whatever this context is... for a Hedge Fund manager it might be one thing, for the shortterm retailer something completly different. Since we are here on EliteTRADER and not on EliteBUYANDHOLDER or EliteFUNDMANAGER I guess most of you here are shortterm (retail) traders. For you guys and girls, I really recommend that you pay close attention to how market participants, the big players behave around and at that/ these levels. You trade with small to medium size, which can be a huge advantage. Big size can also be a true advantage in certain situations, but if you trade small size what you can do is to identify what the bigger players are doing at these tops/ bottoms/ levels/ whatever. You know that it is a key area of interest, many participants are watching and acting at these levels so you got a nice probability that something is gonna happen. But you cannot just say it will always do this, or do that. Here comes the work that you have to put into this: concentrate, focus on the order flow at this danger point. And then act on what you SEE, what is HAPPENING right NOW. It takes work and effort to do this, you wont learn this overnight, and it is not as simple as saying "if top of range then sell", or "if breakout then buy", but you really think this simple rigid rules will bring you consistent $$$ ? The market (participants) are not stupid and you have to be very skilled to take money out of other guys/ girls pockets. These skills you can be built by training, lots of work and more training. There are no shortcuts.
88,8888888% you got it wrong.just like 80% of dumbwits are losing their ass selling at the top and buying the bottom.go ahead!
Nope YOU got it wrong. I do sell at the top ...buy at the bottom. You have to know how to read the pressures within the range. Apparently you don’t. And of course a successful BO sooner or later will happen at top or bottom. At that point the tactic changes. But not before. Market ranges more than it trends. So best make haste and learn how to trade ranges! ROFLMAO Keep that wind at your stern sailorboy!
Maybe just because they think high price usually means high quality, although it is not always the case