As PYX breaks its major downward trendline, a long position is entered with a tight stop.
As this trade progresses, shorts will be forced to cover, creating a potential for a parabolic move north.
Factors leading to the decision:
As always, use a tight-stop and if it rips down, let it run and trail stops behind.
As this trade progresses, shorts will be forced to cover, creating a potential for a parabolic move north.
Factors leading to the decision:
- Long-term downward trendline broken
- Decent bullish volume showed up at the low, noticeable to traders looking for a sign of reversal
- A recent small retracement created a higher-low which is an ideal place to put a tight stop for the trade
- 20 SMA was recently crossed and held, luring in MA traders
As always, use a tight-stop and if it rips down, let it run and trail stops behind.
Trade closed: stop reached
Stopped out on a gap
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.