Speaking of Livermore's quote, that's what I have to do now, but for a different reason. Let me give you an example, SLV.
This 2 min leading positive divergence in SLV really makes me want to get right in there, I know with only a 2 min positive this would be a very short trade indeed and I know that probabilities remain high that this is not the pullback I'm looking for. After waiting a bit longer, the fastest 1 min chart below confirmed my patience...
The fastest chart went negative, suggesting SLV will pull back, so the patience paid off, but even if SLV took off to the upside from here...
It's not a High Probability trade. The probabilities may be to the upside, but we need a better entry and less risk, SLV is right in the middle of a range, there's no better entry or reduced risk, but if it does pullback as the 1 min chart suggests, then maybe it will become a High Probability trade.
If it doesn't, we just wait for the next opportunity.
These divergences are so young, most of this theory is based on market behavior, it just so happens we have early divergences seemingly confirming the "Market Behavior " theory and all that is, is understanding how Wall St. plays the game.
If you have emailed me, it may seem I'm not busy as I'm not posting a lot right now, but I'm jumping back and forth every couple of seconds between about 50 assets looking for clues.
No comments:
Post a Comment