Wednesday, May 18, 2016

Market Psychology Of A Breakout Failure Reversal;

Today we see a small gap up on the open with a bear attempt to go lower that was completely shut down by the buyers as if to say, not on my turf! This was met with huge buying pressure as more and more sellers realized they were on the wrong side.

The flood of sellers exiting added even more buy pressure into the move as they have to buy to get out of shorts causing a rip higher in price ahead of the inventories. Even after the inventories came out, we saw price come back to the same area where more buyers stepped back in!

Test-Drive our Advanced Membership  Click here to register for the Free Trial!
Are you a Crude Oil Trader? Click here to trade Crude Oil
Are you a Euro Trader? Click here to trade Euro
Are you an E-Mini Russell Trader? Click here to trade E-Mini Russell
Are you a Gold Trader? Click here to trade Gold
Join the Premier trade-room as an Advanced Member

No comments:

Post a Comment

Thank you for your comment! Your comment will be reviewed and posted asap, thank you for your patience.