Updated: Jun 3
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!!!!!!