This while i was reading one the cpo market commentary from one blog - futures market commentary actually , i have encountered some points of idea i could not understand from the blog. That shows i still need to learn a lot of things about fcpo market and i think it can also apply to other market in general as long as it involves trading.
Below is the interesting point and the things i need to get what is the author of the blog try to convey:
"Traders may go Short if the market does rallies or gap up slightly without breaching the 2nd resistance level and retrace about 10 points from there (enter only if the market show signs of weakness from the rallies), your stop should few points above that resistance level as well."
The one highlight in RED is what i need to learn.
What does it mean by rectrace 10 points means? and
How to identify signs of weakness from the rallies?
Answer (Updated):
1. part of it by looking at bearish divergence (CCI), flat MACD, and low volume.
2. candle formations, or resistance level based on pivot point, R1 / R2
Answer (Updated):
1. part of it by looking at bearish divergence (CCI), flat MACD, and low volume.
2. candle formations, or resistance level based on pivot point, R1 / R2
Any one is welcome to help me and comment.
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