06 Feb Objective: follow the price
in Trading Analysis
The goal should always be to follow the price. Do not chase him, but follow the side that puts the most pressure, towards where the price finds less residence.
As I say so many times: “we are not fortune tellers”. I don’t know what the price is going to do. My job is to identify a likely environment for my trade and make a decision with measured risk.
The price has been in a range between 12,900 and 13,600 points since November. The trend was bullish and in the very long term it still is. But what has happened in recent days changes the most immediate context. The price to exceed the area of 12,900 with the intention that it has done so invites us to join the shorts. Forget the bullish side for a while and see how supply acts out of areas.
The most important thing in a downtrend is not supply. The price will already fall. What really matters and where we have to pay attention is the demand. In his ability to overcome zones. If we are able to see those failures in the demand, the withdrawal of pressure, we have the short assured. Remember that the trend rules, it is our friend and we must operate in favor of it.