Monday, August 8, 2011

Breadth is the boss

Despite a few attempts at a bounce, the market has followed the breadth perfectly on the session.

Historical ratio levels are being seen here but all that means is new records are being set. A big mistake traders make (and I'm one of them), is looking for historical levels as signs of a place for a reversal to happen.

They are reference levels, but much more evidence is needed in order for you to use them as a trade entry


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