I have a new investopedia article out. I talk about spotting partial retraces and how they can let you in to a trend early.
If you read it, keep in mind that there is an edit I asked for.
In paragraph 7, the article states "Typically, the second highest daily high after a decline of several candles into such support is enough to confirm your thesis of a reversal.". What I was trying to say was the second instance of a higher daily high after a multi candle decline, not the highest high, which would imply something altogether different.
I would appreciate any feedback on it.
Thanks,
Joey
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I thought it was a very good article with clear sample charts. I didnt think a gap could act as support so that was new to me. I'm going to try and create a scan to look for partial retraces. Do you use a particular scan or have any tips for it?
thanks for the article.
Thanks for the comments croker. I don't have a scan that looks specifically for partial retraces. I would imagine that would be difficult to program. I have a scan that looks for strong stocks that have become oversold. Most of the time they bounce from oversold status and then come back to test where they bounced from. This is where I look for most of my partial retrace trades, but in reality, it can happen anywhere on a chart.
Thanks again,
Joey