What if the price rejects downtrend line?
It is important to wait and watch for the strong area at 1005 / 958 and open new trades only with confirmed reversal signals.
Currently are showing long wicks on the bottom, which is telling us that the buyers are getting back in the game and this supports upward movement together with divergence.
Do not end up buying too early and only trade from the confirmed breakouts.
Reasons for this are the following:
If the price rejects and moves further downwards, you could have:
-> Bought cheaper
-> Lose money or end up bag holding
- Holding long periods of time may cause you lose trading opportunities
-> Stop-loss wouldn't had triggered
Wise money management helps you to determine your risks and makes you to lose less!
If you need any help with trading, recommendations or where to search basics just feel free to leave me DM in here or in my twitter. I try to respond ASAP! :)
Things to Remember:
- Stop-loss orders are strongly recommended.
- Beware of buying tops or FOMOS, you might end up losing or waiting long periods of time before getting anything back.
- Do your homework before investing.
I'm still new to this so I'm probably wrong, right?
Yes that's bear divergence there