A poor decision to enter.
why?
In an uptrend, resistance is usually provided by the higher moving average envelope (something like a straight Bollinger Band) and a good time to buy is usually at the value zone (the area around the 13 day EMA and 21 day EMA), and in a downtrend, support is provided by the lower moving average envelope and resistance at the value zone.
in other words, in uptrends, buy normalcy and sell mania. in downtrends, buy depression and sell normalcy.
I should have applied the latter to NOL this time.
Since this is a short term trade, what matters is the short term trend, which is down.
Undoubtedly, MACD histogram has a nice bullish divergence. Very nice in fact.
RSI and Stochastics have bullish divergence yet are capped at 50%.
Why I decided to sell:
1.) ......
