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As to absorption, possibly. You'll note that that was the bottom of the range for the 9th. As to looking to the short side, there's no reason to do so as there was no buying climax. |
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Yes, the 9th is basically the reason why I had that level as resistance. Also in part because of the action on the 25th and 26th of March.
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Incidentally, W would likely move his stop to below 1840. Nic? |
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I take it he moves his stop up below the last swing low in an uptrend and vice versa in a downtrend.
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As for W, I assume he would have entered off yesterday's selling climax, though he might pyramid off the "stall" that you refer to. You'll notice that it forms a hinge, a type of springboard. |
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Allright, but let's assume he's not holding overnight. So he can't be long from yesterday. I remember reading this in the day traders' bible:
"A pure tape reading day trader does not care to carry over night. The tape is then silent, and he only knows what to do when it tells him. Something may occur at midnight which may crumple up his diagram of the next day's market. He leaves nothing to chance; hence he prefers a clean sheet when the market gong strikes."- Wyckoff
So if you are not long on the break of 1825, there's not much to do except for stand aside and wait another day?