Pepe Swing—Support & Resistance (Range) | Developing Intuition

1 ago

This chart shows a range: Support and resistance levels for short- to mid-term trading.

The general bias is bearish based on the peak produced late May 2024.
With a bearish bias, any rise can be used as an opportunity to sell.

➖ When prices move toward resistance (up), short entry opportunities develop.
➖ When prices move toward support (down), long entry opportunities develop.

After range trading is over the market will develop a trend.
The hardest time and place to trade is when the market is ranging; such as now.
Many shakeouts and false signals can develop at this point.

👉 To trade successfully here one needs to be attuned to their emotions and feelings and go against the general market impulse.

➖ When things are looking really good and an impulse to buy develops, this normally happens at resistance before a turnaround. This is because the impulse we feel is the current market sentiment. The sentiment turns bullish when prices are rising and thus we get the impulse to buy. But buying isn't necessarily the best choice in this example.

➖ When things are looking bad. Prices are dropping. We get a negative feeling, we feel an urge to sell. But this might not be the best choice at the moment. The negative, depressing feeling reflects the fact that prices are dropping and people are selling, not that the chart is good to sell.

So we need to learn to distinguish between market feelings and our own internal guidance; intuition.

Your intuition will never be colored by strong feelings.
Your intuition will never rush you. It is a calm sentiment. A wise feeling.

Your intuition can insist a few times and then retreat.

The market impulse will rush you: "Now or never." "Hurry!" "FOMO!" Etc.
The market impulse will come with chatter in your mind. You start hearing all sorts of excuses as to why you need to make a move "now."

Learning to distinguish between your own internal guidance and the market sentiment can lead to major growth and success.

There is no hurry.
You can take your time.

Start small... And let it grow.

You are appreciated.

Namaste.