Here’s 5 questions to decide buy or sell
95% of traders don’t know what “confirmation” looks like so they aren’t confident when buying or selling.
Here’s 5 questions to test your understanding
1
- look at volume
- what is happening at support
- are sellers becoming weak?
What do you think? breakout or breakdown...
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breakout! you can tell because the buyers keep stepping in to hold support up!
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2) (click picture)
What happens next here. Sellers keep pushing at resistance but support is also being held. This happens a lot of trading. Consolidation:
What happens next?
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This was was hard to tell but SPY was at all time highs already and it couldnt break so it eventually sold off.
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3) What happens next here?
- What is your trading plan?
- How much are you risking?
- Where is your sell target?
Where are the buyers and sellers?
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SPY $SPDR S&P 500 ETF Trust(SPY)$ held support and broke out towards $628+ this day. This was the exact moment you had to decide if SPY was bullish or bearish?
Were you right?
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4) SPY keeps climbing up so when do you know the top is in? Does this keep going or sell off?
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This one is hard to say but you can tell buyers are no longer interested in buying at the top and volume starts to go down then the sell off happens.
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5) Last question if you want me to do more (write "test" in the comments) Ill do more quizees for you guys!
This is a key level of support now. What happens next. There are 3 big clues 1) volume 2) how big and small candles are 3) the key level of support at $620
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SPY held a very powerful level of support at $620. As you know then went straight to $630. This is the power of technical analysis.
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