Block Location

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Trader ???

Block Location

Post by Trader ??? »

Another Q, actually it is just an observation. In many charts I noticed that, for example, markt is in trend run down, say on hourly bars. We notice that hourly is setting up dotted line for congestion up, and all is well, we also notice that hourly block has weakened. BUT, it's not until the last hour that hourly congestion up occurs. But than near the close we notice that tommorrow's daily resistance is at daily EB, so daily C wave may be coming, at the same time hourly block which was weak until last hour has moved into tomorrow's daily resistance, thus it's strong now.

Should one exit his longs which were taken today in last hour, given that oncoming live indicators say so? H.B.
pldot
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Posts: 779
Joined: Sun Apr 27, 2008 10:52 pm

Re: Block Location

Post by pldot »

This has a lot to do with what timeframe you are trading, i.e. what is your goal,and your target? If you are trading the weekly or monthly bar then you might hold short in the first place. It also has to do with your risk profile, depth of pocket, etc.

Note that is not just the formation but that price must actually react to the formation. In other words, support is support until broken.
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