why we should have gone long on Friday
Updated
I was introduced to the TTM squeeze back when I was daytrading in the early 2000s, so there was a TTM squeeze setup. In a 5" timeframe we were respecting the 200 EMA bouncing off it, that happend. To publish this I had to go to a 15" time frame, in that timeframe we got bullish engulfing, bullish engulfing at 7:00 AM. We were held back by the 200 EMA, bounced off the 50 EMA and exploded with volume on a gigantic bullish engulfing into a 250 point move with huge green volume, wee were above the R3, but recall the trend was up all week, so in a sense the market was to powerfull to drop that far. a Pivot Trader might have gotten out at R4, but one could have ridden it up to R5 and the upper trendline since July. Not shorting at R4 would have been a judgment call, after a week of going up, going up 200 points the previous day... one could have set their stop under the 2 red candels, and there were powerful reversal signals at R4 to stay long... or at least take profits and leave a runner on, because the market was just relentlessly moving up.
Note
most of us want the market go go back to selling, so what does that tell you it will do? Paper always does what will cause the most people to overtrade. I'm ready with my insurance hedge as explained in How To Hedge against The Futures When they go Crazy.
Please check out Kauai Dave Pivot Traders on youtube. youtube.com/channel/UCNpY7S_s1cxw0cer4PyEEMQ
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