Multi-Timeframe Analysis:
Hourly Chart: Getting out of a trendless (sideways) phase after 5 weeks. Bullish
Daily Chart: Getting out of a downward channel. Bullish
Weekly Chart: Price reacted to the trend line and bounce back. Bullish
Monthly Chart: first sign of recovery after 3 months of correction
Daily average trading value
Conclusion: In the price pattern we have shreds of evidence that Ford's correction is finished but Volume and Price volume do not support this idea and make it likely to be a Bull trap followed by whipsaw..!
I would rather wait and see if volume supports this breakout!
What Is a Bull Trap?
A bull trap denotes a reversal that forces market participants on the wrong side of price action to exit positions with unexpected losses.
Bull traps occur when buyers fail to support a rally above a breakout level.
Traders and investors can lower the frequency of bull traps by seeking confirmation following a breakout through technical indicators and/or pattern divergences.
What Is Whipsaw?
Whipsaw describes the movement of stocks in a volatile market when a stock price will suddenly switches direction.
There is no set rule as to how to manage whipsaw movements in a volatile market as it is an unexpected movement.
Whipsaw in trading securities often results in trading losses.
Day traders expect whipsaw movements and often assume long-term, buy and hold positions to ride out the fluctuations in price to avoid a loss.
Educational Articles:
https://www.investopedia.com/terms/b/bulltrap.asp
https://www.investopedia.com/terms/w/whipsaw.asp
Hourly Chart: Getting out of a trendless (sideways) phase after 5 weeks. Bullish
Daily Chart: Getting out of a downward channel. Bullish
Weekly Chart: Price reacted to the trend line and bounce back. Bullish
Monthly Chart: first sign of recovery after 3 months of correction
Daily average trading value
Conclusion: In the price pattern we have shreds of evidence that Ford's correction is finished but Volume and Price volume do not support this idea and make it likely to be a Bull trap followed by whipsaw..!
I would rather wait and see if volume supports this breakout!
What Is a Bull Trap?
A bull trap denotes a reversal that forces market participants on the wrong side of price action to exit positions with unexpected losses.
Bull traps occur when buyers fail to support a rally above a breakout level.
Traders and investors can lower the frequency of bull traps by seeking confirmation following a breakout through technical indicators and/or pattern divergences.
What Is Whipsaw?
Whipsaw describes the movement of stocks in a volatile market when a stock price will suddenly switches direction.
There is no set rule as to how to manage whipsaw movements in a volatile market as it is an unexpected movement.
Whipsaw in trading securities often results in trading losses.
Day traders expect whipsaw movements and often assume long-term, buy and hold positions to ride out the fluctuations in price to avoid a loss.
Educational Articles:
https://www.investopedia.com/terms/b/bulltrap.asp
https://www.investopedia.com/terms/w/whipsaw.asp
Use the following link to access trading ideas: patreon.com/SniperTraderStocks?utm_medium=unknown&utm_source=join_link&utm_campaign=creatorshare_creator&utm_content=copyLink
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.
Use the following link to access trading ideas: patreon.com/SniperTraderStocks?utm_medium=unknown&utm_source=join_link&utm_campaign=creatorshare_creator&utm_content=copyLink
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.