Wednesday, March 31, 2010

Impulse Trade - Not Enough Time In Analysis

This was a mistake. My thoughts at entry were to jump in on this pullback in the downtrend. But there was a really strong bottom formation with BT bar testing the low for a double bottom and also a reversal bar that passed the prior low and reacted sharply up on that bar.

NYSE TICK also was divergent there and it was also making higher lows and there was a strong support point right at my entry short for an additional double bottom confirming the trend change and this is also a bull flag at that point.

This was a pause for the new trend direction to be continued. Big mistake.

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