Overview of Trends and Price Levels
1. Regarding Trends
(a) A market should not be considered bullish or bearish, so you should avoid taking any bullish or bearish view of any market.
(b) Simply take the position based on the technical indicators:
(i) If the technical indicators point up, be long.
(ii) If the technical indicators point down, be short.
(c) Livermore said:
‘There is no such thing as the bullish or bearish side of a market; There is only the right side.’
2. Regardubg Price Levels
(a) A market is never to high to buy or too low to sell.
(b) Do not go short because a market is too high, or overbought. It will probably go higher.
Do not go long because a market is too low, or oversold. It will probably go lower.
(c) Bottom line: Base trades on the objective, proven indicators. Do not make exceptions!
1. Regarding Trends
(a) A market should not be considered bullish or bearish, so you should avoid taking any bullish or bearish view of any market.
(b) Simply take the position based on the technical indicators:
(i) If the technical indicators point up, be long.
(ii) If the technical indicators point down, be short.
(c) Livermore said:
‘There is no such thing as the bullish or bearish side of a market; There is only the right side.’
2. Regardubg Price Levels
(a) A market is never to high to buy or too low to sell.
(b) Do not go short because a market is too high, or overbought. It will probably go higher.
Do not go long because a market is too low, or oversold. It will probably go lower.
(c) Bottom line: Base trades on the objective, proven indicators. Do not make exceptions!
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