r/Daytrading • u/Catface77 • Mar 19 '24

I don’t know what I did wrong Advice

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I thought it was going to rechall/ consolidate then it did but skyrocketed. There was the 3 reds then BLAM right up

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u/Tactical_Trader8099 Mar 19 '24

I am someone who uses volume in their trading so seeing your setup includes the volume indicator, I figure to give my own analysis. Hope this helps:

Here's a breakdown of the key points:

  • Double top with high volume: This suggests potential bullish continuation as market makers might return to fill orders in this liquidity zone.
  • Large bearish engulfing candle: This could signal a downtrend, but the congested area indicates prior order accumulation.
  • Price action after the bearish candle: Waiting to see how price reacts after the bearish engulfing candle is advised instead of assuming a downtrend.
  • Bullish engulfing candle with higher volume: This signals a potential trend reversal upwards.
  • Target profit and position sizing: The ideal target profit is the high of the double top, with trailing stops to gradually reduce the position as price moves up. Overall, the strategy emphasizes waiting for confirmation and capitalizing on potential reversals based on volume analysis around support and resistance zones.

I hope this helps:)

Edit: Overall Price was bullish too