DOW / DIA / YM - Bullish pinbar setting up for a blastoff
A bullish pinbar formed yesterday in the daily candlestick chart. This pinbar occurred from a small pullback, off of near term support. Bullish pinbars are patterns that show a false break lower, where there are now traders to went short as it dropped, but when price got pulled back up those traders are now trapped in losing positions. This signals a market that wants to go higher, and potentially a large amount of shorts that will really start becoming squeezed if price marches higher. Short traders that begin escaping losing positions are what fuels the aggressive move higher. Regardless of the quality of this setup and it's higher than 50/50 probability of success, traders should still exercise normal risk management. That means to risk a reasonable amount that will not cause major damage to your account balance if it does not work out. Remember, trading is a marathon not a sprint, so trade accordingly.
Dad of 5 • Dev • Candlestick Whisperer • Crypto class of 2019
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