by ahwilliams30 » Tue Mar 21, 2023 12:47 am
Hello,
I took this trade marked in yellow today and I'm super confused on why it failed.
Initially I thought that it was because prices had already moved 2 measured legs up after breaking the initial trend but then I watched Mack's chart review where he marked the trade immediately before and immediately after so that explanation went up in flames.
My other thoughts on why it might have failed...
1. The 2nd short term down trend might need a break and new low. But then I also saw Mack marked the trade within that down trend green so it can't be that.
2. It doesn't look like there's a ton of momentum as prices push up through the EMA and bounce off of it. The smaller green bar before the signal bar that closes through the EMA makes me think this could be the right answer.
3. It might have moved too far for a HL? It just doesn't seem like it's moved super far though.
4. Along those lines, maybe it's too far from the EMA? But it's really not that far from the EMA either.
5. It's into the midline of the range. But the range wasn't fully present at that point with only a double bottom and single test of resistance so I don't think that should have kept me out.
Your insight would be much appreciated.
Thanks in advance!
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Hello,
I took this trade marked in yellow today and I'm super confused on why it failed.
Initially I thought that it was because prices had already moved 2 measured legs up after breaking the initial trend but then I watched Mack's chart review where he marked the trade immediately before and immediately after so that explanation went up in flames.
My other thoughts on why it might have failed...
1. The 2nd short term down trend might need a break and new low. But then I also saw Mack marked the trade within that down trend green so it can't be that.
2. It doesn't look like there's a ton of momentum as prices push up through the EMA and bounce off of it. The smaller green bar before the signal bar that closes through the EMA makes me think this could be the right answer.
3. It might have moved too far for a HL? It just doesn't seem like it's moved super far though.
4. Along those lines, maybe it's too far from the EMA? But it's really not that far from the EMA either.
5. It's into the midline of the range. But the range wasn't fully present at that point with only a double bottom and single test of resistance so I don't think that should have kept me out.
Your insight would be much appreciated.
Thanks in advance!
