A shakeout is designed to frighten Antonio Brown Jersey , and it does a pretty damn good job of it. The general idea is for an who’s been accumulating a futures to throw a sizeable portion of it onto the market and temporarily drown demand, thereby temporarily driving the price down. This rattles the unwary and prods them to sell their contracts, making those contracts available for purchase by the elephants. Those who have grown weary of waiting for the futures to do something other than drift along in this interminable base may also decide to throw in the towel and let somebody else babysit. And, of course, those who have placed hard stops just below the support line will be stopped out in a flash. The shakeout is not always easy to spot at the time as one’s first reaction is that something has gone horribly wrong and the futures is in deep trouble. But if the futures has been basing for a while, if the base has been relatively contained (it hasn’t shot out of the trading range so far), if volume has subsided Derek Carr Jersey , and if there has been evidence of accumulation up to that point, one can at least suspect that a shakeout is taking place. The acid test is the next day or so. If the futures bounces back into its trading range and makes its merry way as if nothing had happened, then you have probably witnessed a shakeout. On the other hand, if volume picks up and efforts to push the futures back up are defeated by too much supply andor too little demand (except on the sell side), then the futures may actually be in trouble, and if you can’t find out what’s going on, you may want to get out and watch from the sidelines until the situation becomes clearer.
shakeout | markup price action part II
Futures contracts don’t always return to the base Bo Jackson Jersey , however, and the “second chance” may not arrive until the futures is considerably higher. If it looks particularly strong, even short-termers may stick with it for the ride. Therefore, no fade. Your first opportunity to buy, if you hadn’t already done so, or to pyramid your position if you had done so, will probably be during the first bout of more serious profit-taking. Here again Cheap Oakland Raiders Hats , volume should be relatively low and the futures shouldn’t break its trendline or fall below its last reaction low (much of this will be done by the elephants who were accumulating the futures in the first place and is the first phase of distribution on their part). The point at which this “reaction” stops will become important, as it is this point which must not be violated after the futures begins its next leg up. If it is, there may not be another leg up.
These drives upward should all be accompanied by good volume not necessarily great volume, but enough volume to keep the price moving. Consider that once you’ve got yourcar moving, you don’t need to give it much gas to keep it moving, but you do have to goose it from a standing position to get it going, or from a cruising status to pass somebody who presents an obstacle to you (a level of resistance?). Any bouts of profit-taking or near-term shyness about busting through a resistance level should be accompanied by lower volume. If volume increases Cheap Oakland Raiders T-Shirts , you may have a problem. If it increases dramatically, we’re not talking typical profit-taking here. Act accordingly. The pattern of these moves may resemble arrow heads move up a lot, pull back a little, move up a lot, etc. However, they may also look like a series of ascents interrupted by…
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