A trader explains why a first red day after a long green streak is a high-probability short signal. When that red day triggers a sharp 20% drop, it breaks the false security of long holders and creates a clear entry point for shorting throughout the day.
Quickly we look at the daily charts. Another reason why this might be really much more ideal than this is if it's never gone red every single day, every single day it's gapping up or going above previous days close. And there's really no sign for anyone who's long to feel scared. There's no reason for anyone to think that they're going to give back their money or that the stocks are going to go down. They think their stocks go up forever. Once it does shift, it makes it much more clear of a sign when to get short than if it does this. Because who's to say if the first red day finally does come, let's say finally this thing just collapses 20% in a single day. Well, from an entry standpoint, intraday, what makes me any sure to get short up here on this day than here on this day or here on this day? And that's why I might I like these much, much more because sometimes I will just actually totally miss this red day because I'm not willing to try it on either of these days versus this one. I know I'll give this three tries in one day because one that showing me signs that has never shown ever in the entire run up. It's like I'll keep going for it. Yeah.
