Trade Idea: A Reversal Candle
Sentiment is awful. Everyone who was super bearish heading into FOMC in March is super bearish again. History doesn’t repeat, but if often rhymes.
Back when I was an impressionable young trader buying the US equity versions of today’s crypto shitcoins, I followed a really good technical trader who absolutely hated the stock that I was overweight long. Even though we saw my top investment at the time differently, I knew he was better than me so I followed him anyway. Learning by doing and learning from people who have been around the block is important. And yes, I realize how ridiculous I look saying that 3 hours after this. Whatever. I’m unapologetically me, baby!
Anyway, there is a lot at risk at the moment. Sentiment is awful. Everyone who was super bearish heading into FOMC in March is super bearish again. History doesn’t repeat, but if often rhymes. More importantly, while understanding the fundamental setup is important, understanding technical setup is important as well. You can be fundamentally bearish a company and still be bullish that same company’s stock because of price action indicators. That’s what this trader who I referenced earlier was really good at.
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