@CTUCyberGroup Lesson: The Chart Means Nothing Without Orders
The first thing I want to do is welcome all of our new members to the @ctucybergroup! I’ve seen some great traders adding to what is already a phenomenal group. Today wasn’t a crazy day but once again we made the best of it. This morning and towards the afternoon $PTX gave us a nice profit, and actually happens to be what I want to talk about today. We also had some nice winners in $P $CSIQ $DANG and $GTIV.
I did a free webinar today and once again proved the power of being able to see the orders on total view. High frequency trades prove time and time again to give us liquidity and help to follow the otherwise hidden market makers. Just once again to prove this fact, that’s right not theory, fact, I want you to take a look at the chart of $PTX. If you look @ 3:33pm EDT one of my students asked me where support was on $PTX, there was a 5600 share buyer at $6.45. Two minutes later the order was pulled at that price and based off the chart, what happened? The stock dropped past the support level going all the way down to $6.36. Too many traders think support and resistance come from a chart. Now it is true that it’s a great way to find previous support and resistance? Absolutely, I couldn’t agree more, but when it comes to real time, nothing matters besides the orders. The best traders on wall street having been making a living trading this way for year and years so who are we to try and do it differently. Remember, just follow the money!