Selecting Reversal Plays In An Oversold Market
Keeping it consistent is one
of the keys to maintaining one’s edge. For
instance, if you’re a reversal player, stick to those setups that qualify your
long-term edge. I’m not under any illusions, it can be difficult at best when a
market becomes ‘undone’, and oversold seems to produce more oversold action. But
maybe, if you turn off the all of the ‘expert analysis’, and instead focus on
your own analysis of what the move ‘now’ represents…you might just find a gift
here in the present.
13:12:15
Intraday
Setup Alert
Findwhat (FWHT)
has formed a a low-level Slim
Jim with diverging stochastics on the 5-min. chart. Session lows have found
support off Fibonacci daily chart price projection,
extension levels, and prior price supports. FWHT is
down 1.93 at 17.06.
They’re not all going to work of
course, but when you’re faced with an abundance of ‘reversal material’, look to
find the ones that best qualify, as defined by your idea of edge. If you stay
patient, and continue to focus….look ‘what you might find’, well-defined edge
in an oversold market, and a reversal player’s best friend.
Chris Tyler