REVERSAL DAYS(CONT)
MAY 12TH:A horrid day....short below BAR 1 at 4954,covered at 4975 + 7=4982.....Long at 4982,sold at 4930......short at 4930,cover at 4977....Long at 4977,add at 4997,sold at 5037.......still day ends with losses.Few things:Not taking the reversals would have put you in great profits this one day.....and led to great pain on other reversal days.We got a pivot on 15,and a reversal signal on 60.......going through this day and "learning" from this day,and then never taking reversal points on the 60 is even more detrimental than taking the losses for this day.......It is on these days that one hears wise crack statements taking into account this one day and forgetting that this one day is just one in many many many days.
Another thing:Look at the pattern on the 12th of May.....a breakdown bar(BAR 6),a Wide Range Bar on high Volume,making new lows and then unable to close in new lows...a failed breakdown and an exhaustive last ditch bid by bears to push price downwards.Next bar is a bullish bar.Go long the high of that bar,in this case at 4970+7=4977
All the best!
Saint
