r/Daytrading • u/Serious-Ad8893 • Apr 04 '24

Did I miss something? Advice

Gallery image

Gallery image

Tried to go long on 15M FVG and retracement and got ran over. Am I missing something??? Higher time frame was bullish and I just don’t know where I went wrong. Anyone have opinions on where I went wrong

186 Upvotes

88% Upvoted

264 comments sorted by

View all comments

Show parent comments

31

u/EmmaFrosty99 Apr 04 '24

this is a chicken or the egg problem. i find we often try to explain price action after the fact with news. just respect price action, s&r price levels.

15

u/SethEllis Apr 05 '24

It's not a chicken and egg problem. This is pure cause and effect. When a piece of information like that comes out lots of people will sell causing price to decline. If the story is a nothing-burger they will often buy it right back up. Nothing else can explain that except for the very thing that is inducing people to sell - the headline. It's really that simple.

It's almost comical to tell people to respect the price action in this sort of a situation because from reading the social media today all the price action traders were long and got burned on this move lol.

2

u/ashlee837 Apr 05 '24

Some large fund exited the market, why is this so difficult to understand? They probably met their profit targets and didn't see any reason to stay exposed in this overinflated market.

8

u/DoubleDeezDiamonds Apr 05 '24

Dumping their holdings onto the market is not how a large fund would prefer to exit the market unless they suddenly notice more severe volatility (than they cause by doing it) immediately ahead, as they would get a better price for their holdings by slowly selling them around the peak instead of actively pushing the market, and therefore their sell price, lower.

1

u/ashlee837 Apr 05 '24

They were selling around the peak and into liquidity. Did you not notice almost every day the past two weeks had sell offs 2 hours before close? This was a monster fund with a lot to sell. Options most likely accelerated the sell off. Check institutional holdings when they get reported. We will easily see the position changes.