You cannot trade on technicals alone. One has to watch the triggers and wait for them to conclude. This was a case in point on Friday 26th August 2022, after the Jackson Hole speech by Fed Chair Jay Powell. Bulls drove the market up just prior to the speech thinking that released economic data was good for a continuation of the bear market rally. Then Chair Powell came on and in a few minutes the market tanked, BIG!!. The big shorts scored here.
The bottom line is don't trade on opinions or technicals alone. Watch for the triggers. Triggers are events, economic data and Fed decisions that sway the direction of the markets.
The bottom line is don't trade on opinions or technicals alone. Watch for the triggers. Triggers are events, economic data and Fed decisions that sway the direction of the markets.