QQQ - Chart Link- this morning folks were
commenting that QQQ fell though the level, that's what you have to
be careful about guys - bear traps or headfakes. Also those levels
are not one price, they are a range +/-, that Pinocchio move below
that horizontal line was just noise
Posted by rmoore100 on 18th of Aug 2023 at 04:17 pm
I'll admit, that's something I've had a hard time with....those
Pinocchio moves. Whenever there's, say a support
line, I'll try to place a stop several points below that support
line, however quite often it executes and then reverses (bear
trap). Is there any general rule of thumb for placing stops
to keep these Pinocchio traps from happening ?
Appreciate thoughts from anyone on this.
Many Thanks
Posted by mastermind on 18th of Aug 2023 at 05:52 pm
It's tough. I lost trailing pieces on two of my still strong
stocks - STRL & WFRD - when they opened below key moving
averages and then finished solidly higher. I wish there was a
setting to say "ignore stops for the first xx minutes of the day
and then put them back on".
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These ended up bouncing near those big levels
Posted by matt on 18th of Aug 2023 at 03:51 pm
QQQ - Chart Link- this morning folks were commenting that QQQ fell though the level, that's what you have to be careful about guys - bear traps or headfakes. Also those levels are not one price, they are a range +/-, that Pinocchio move below that horizontal line was just noise
$SPX - Chart Link- bounced near the big level
I'll admit, that's something I've
Posted by rmoore100 on 18th of Aug 2023 at 04:17 pm
I'll admit, that's something I've had a hard time with....those Pinocchio moves. Whenever there's, say a support line, I'll try to place a stop several points below that support line, however quite often it executes and then reverses (bear trap). Is there any general rule of thumb for placing stops to keep these Pinocchio traps from happening ? Appreciate thoughts from anyone on this. Many Thanks
It's tough. I lost trailing
Posted by mastermind on 18th of Aug 2023 at 05:52 pm
It's tough. I lost trailing pieces on two of my still strong stocks - STRL & WFRD - when they opened below key moving averages and then finished solidly higher. I wish there was a setting to say "ignore stops for the first xx minutes of the day and then put them back on".