Why does it always progress while stopping at times even in a strong market? Part 1

No matter how intense the market is, does it always pause somewhere and then continue advancing?

For example, suppose there is a certain level ⚪︎⚪︎⚪︎ on the monthly chart above, and you assume you are holding a long position

All of those traders would probably think like this

“Don’t dawdle, get to the take-profit point quickly.”

I understand

There are times when I think the same

But you see, that ⚪︎⚪︎⚪︎ on the monthly chart means that within it there is always a ⚪︎⚪︎⚪︎ on or below that time frame

And you cannot move forward until that ⚪︎⚪︎⚪︎ is absorbed

Haven’t readers experienced this too?

Before reaching your own take-profit point, you retrace significantly,

get nervous and reluctantly take profits → but in the end it goes up again and reaches the original take-profit target you planned

That’s like there was a daily-chart ⚪︎⚪︎⚪︎ before the monthly-chart ⚪︎⚪︎⚪︎ was reached

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At this point a sharp reader would think

“Hey, what about the Swiss franc shock? That move was completely linear, and there were no bullish or bearish candles on the short-term charts, right?”

and

That’s a good question ~

The answer will be in the next article

End

Excerpts from Blog: Full-time Trader’s Insider Information, April 6, 2024