I drew this up really quickly - but hopefully you understand
what I'm conveying. Read over the annotations. The
illustration is overly simply and life but the point should make
sense.
I added some additional comments to that image below
basically trying to convey that rarely do you get those big sell
offs like I show on that bottom when when the MA's are slopped like
that, unless it's blow off top or something parabolic. what tends
to happen is people do indeed manage to catch a short, it works for
a 1/2 day or a day, they don't take profits because they think the
market should go lover because it's overbought, so it rebounds fast
and they lose their profits
the point to take away if one does short when the MA's are
sloping like that, take profits quickly vs holding out for a big
trade that doesn't come. Better to hold out for the bigger
short when the MA's are more flatly sloped, or short the lower high
from such a condition.
MA slope illustration guide on shorting
Posted by matt on 27th of Feb 2019 at 12:56 pm
I drew this up really quickly - but hopefully you understand what I'm conveying. Read over the annotations. The illustration is overly simply and life but the point should make sense.
I added some additional comments
Posted by matt on 27th of Feb 2019 at 03:14 pm
I added some additional comments to that image below
basically trying to convey that rarely do you get those big sell offs like I show on that bottom when when the MA's are slopped like that, unless it's blow off top or something parabolic. what tends to happen is people do indeed manage to catch a short, it works for a 1/2 day or a day, they don't take profits because they think the market should go lover because it's overbought, so it rebounds fast and they lose their profits
the point to take away if one does short when the MA's are sloping like that, take profits quickly vs holding out for a big trade that doesn't come. Better to hold out for the bigger short when the MA's are more flatly sloped, or short the lower high from such a condition.
again just trying to keep it simple
Thanks Matt!
Posted by davidw on 28th of Feb 2019 at 10:00 am
Thanks Matt!
Excellent. Thanks!
Posted by stevieb294 on 27th of Feb 2019 at 06:37 pm
Excellent. Thanks!