This market has been plagued with interesting factors creating an even more difficult trading environment; buy programs, sell programs, mass manipulation. All this emphasizes the importance of becoming privy to the factors that move this market under any circumstance.
Today's end of day price performance displayed one of the many scenarios that time after time, catch the amateur trader on the wrong side of the market - fake out moves.
Confirmation is constituted with a close below the trend line, then the next candle needs to close below the low of the previous candle - creating a true breakdown. Without this secondary confirmation, the next or current candle can easily float back higher, (faking out the amateurs) thus decreasing the probability, as it did in today's example. This is the main reason why it is vital to understand the need for confirmation on patterns, trend lines, nearly any trade prior to entering. Most obvious or well known plays (whole numbers, trend lines, patterns) are designed to get the amateurs on-board thinking a move has been confirmed then turning against them.
Note the channel trend line below in the chart. The only way sell volume would have come into this market to negate the buy program would have been if that lower line was broken and confirmed. However, it was not broken only pierced, and a massive buy program hit again. This happened yesterday as well and probably 95 of the last 100 trading days. As the manipulation continues, you must refine and advance your trading skills. By learning the proper tools needed you will enable yourself to make endless amounts of money from the lemons the market provides!
Begin to enlighten yourself NOW!
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