Well I took 3 losers for 10 points then made it all back in 1 trade so that is good R but terrible execution of trades. I shouldve avoided the first 2 trades for many reasons. I will go over all depth and breadth indicators that were telling me to not short even though I didnt listen and tried to short anyway.
First 2 trades were just pure stupidity. We are in a frontside with many other indicators telling me to not take a short.
VOLD ratio
- Each arrow is where i took my trades. The first and second arrow are me taking trades the moment that we come a little bit off of 3 on VOLD. This is pointless becuase if the vold is decreasing that is not nearly enough of a reason to take a short. It was still at nearly 3x up to down volume so why would I go short? Once we make that one last spike higher where we went to nearly 3.5 and immediately resumed the downtrend that was a clear sign that buying is massively slowing and they are getting somewhat exhausted. When buyers step in like that and we cant move higher whatsoever that is 100% exhaustion. I need to either wait for VOLD to be negative and go short or it has to be in a clear backside move. No more shorting when we are pressed up against the 3 level
ADD Line
- ADD opened pressed up against the 2000 level so strong buy momentum as well. I took my first trades while the ADD was still holding above opening values and we were still uptrending. I took a short basically right as the ADD found support to continue higher. Again once we go backside and break opening price that is when it makes more sense to go short.
TICK
- Again TICK holding above 0 while shorting is bad bad idea. When it starts to hold BELOW zero then we get more clean momentum to downside.