Dr. Elder … ‘Actions Should Be Automatic’

As implied by Dr. Alexander Elder, years ago, when a trading professional sees a particular set-up, the ‘actions should be (somewhat) automatic’.

Looking at the set-up of Bank of America (BAC), what’s the trading action?

We have the repeating pattern of spring-to-up-thrust, labeled as ‘S‘, and ‘U‘.

Price action retreated from the top (blue line) resistance area, and has now come up for a test.

Bank of America BAC, Weekly

Coming back up for a test, reduces risk.

Positioned short this equity, as BAC-25-02, with initial stop at last week’s high (not advice, not a recommendation).

Stay Tuned

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The Danger Point®, trade mark: No. 6,505,279