Day Trader’s Weekend Aftermarket Lounge 17-19 Jan 2020, page-113

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bossivic

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18/01/20

16:43

Post #: 42451645
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Originally posted by Lambrae: ↑

Bottoms are probably less of a day trade, and most who pick them, would probably plan to hold for the larger rises. If you can work out the bottom accurately, you can then know that you have bought into the beginning of an uptrend, and you interpret the next pullback, as a pullback, and that is important for the sake of bigger gains. Bigger money is made from the bottom, but picking them is extremely hard to do. Unless you put in the time to study how to do it , it will end badly- eventually . All of the big daytrade rises that spring from the bottom on announcement would have signs of being prepared to do so , before the rise , if you study what to look for. So the overhead sell pressure is not usually a problem if the share has been prepared for the rise. The sell pressure is absorbed by the demand. Breakouts would have a high failure rate too, as half of them would be bull traps unless you are just trading for just a few pips . in and out again, immediately selling into the breakout - or, unless you know how to spot where distribution is taking place , and wait for distribution to sell. That also would require skill. The trader who trades from the bottom needs to know the entire chart anyway (including trading breakouts) , in order to stay in . If you don't stay in for the bulk of the rise from the bottom, what is the advantage of picking the bottom? You might as well just trade breakouts etc. Everyone picks the spot on the chart that they have worked hard to interpret. But I don't think we really get away with not knowing the whole chart though, unless you have big self control to be content with the part of the chart that you know , and don't trade outside of it. In the end it is not either or , but both .

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I think you have just proved my point
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