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News Fake Cover Strategy

Updated: Jun 3, 2020

News Algos - pfffft. Why does the market sometimes "POP"? - a news release (mostly by an algo), breaking news or a big trader. They have a limitation though; they chuck all their volume on to quickly, POP! What happens next?

You guessed it! One of two reasons. Continuation, which is nice to take at the 50% or most likely at the 38.2% or a complete and utter collapse. Hahahahahahha! - this is where we come in - the humans, the ones with brains! Bwhahahahaha!

That's right, we don't always have to take a breakout or the bounce between lines of a channel, wedge, diagonal or pennant. We can look for the POP and if the continuation doesn't work then the cover is a close to guarantee!

The below examples are long and can easily work for shorts...

A break of the 61.8 on the upside suggests that the downside reversal entry will be at the 50% for an AB=CD target.

Don't be afraid to take this cover it is very high probability!!!!!!

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