A failed signal is the best signal
Posted by Cire2222 on Jul 7, 2008
A failed signal is the best signal
Some people say that a failed signal is the best signal. Im not sure if it the best but often times if you catch a true failure then you can nail a big move. One thing that I look for is what I think is a fake breakout used by shorts as a chance to dump into some buying, giving me the heads up a big move down is about to occur. Today I got a great example of this in the S&P mini futures. Below are 3 charts of the 5min ES from todays action, these will help give you a rough idea of what I saw hapen in the moments leading up to the sell off.
part 1 - what everyone sees setting up
part 2 - the fake breakout, then complete failure ( the bottom of that word bubble cut off the word failure)
part 3 - the result
