Did the gold chart telephone me and told me that there will be a stop clearing exercise before going down? It did not. But the chart indeed told me
1. Supply is entering in to the market.
2. Upside is capped.
3. There were various bars upon which traders would have shorted with stop just above the high of supply bar.
4. So a nice stop clearing manoeuvre would greatly panic the traders (particularly those who have shorted at wrong places and whose stops are bit too wide when compared their place of shorting and the top of supply bar) and push them in to covering their shorts and perhaps some might have also reversed their position and might have even gone long!! This stop clearing exercise will prevent these traders from buying at a later stage from below because, their shorts are already stopped out. So the later possible impediment for the downmove is removed.
Look carefully the below chart. A few more candles are added on the right edge since I posted last chart. See how price moved after that candle which I have marked with arrow. There was absolutely no opportunity for any misconceived longs to get out.
As I have been saying, patience is the key. From time to time I have been posting charts that too in real time. I have been warning about the possible moves. When you know how your opponents are going to behave, you can wait for that perfect moment and then make your move. You will save lot of energy and you will undergo less imotional stress. Chances of commiting mistake is greatly reduced.
I sincerely hope I have been able to show you a lesson or two that too in real time in the series of posts made here.
1. Supply is entering in to the market.
2. Upside is capped.
3. There were various bars upon which traders would have shorted with stop just above the high of supply bar.
4. So a nice stop clearing manoeuvre would greatly panic the traders (particularly those who have shorted at wrong places and whose stops are bit too wide when compared their place of shorting and the top of supply bar) and push them in to covering their shorts and perhaps some might have also reversed their position and might have even gone long!! This stop clearing exercise will prevent these traders from buying at a later stage from below because, their shorts are already stopped out. So the later possible impediment for the downmove is removed.
Look carefully the below chart. A few more candles are added on the right edge since I posted last chart. See how price moved after that candle which I have marked with arrow. There was absolutely no opportunity for any misconceived longs to get out.
As I have been saying, patience is the key. From time to time I have been posting charts that too in real time. I have been warning about the possible moves. When you know how your opponents are going to behave, you can wait for that perfect moment and then make your move. You will save lot of energy and you will undergo less imotional stress. Chances of commiting mistake is greatly reduced.
I sincerely hope I have been able to show you a lesson or two that too in real time in the series of posts made here.
