Chart reading comes down to reps. You get better by looking at a lot of charts and tracking what happens.
Charts reflect institutional and insider behavior — roughly 70-80% of large-cap volume is institutions moving size.
$DKS dropped 30% after earnings yesterday. Before the print, the chart had already broken below the 200-day moving average and was sitting under a declining 50-day. That's not a setup you want to hold through earnings.
Process over time matters more than any single outcome. One trade doesn't prove or disprove anything. What matters is whether your edge holds up across dozens of setups over months and years.
If the chart's already broken and the trend is down, stepping aside or sizing way down before a binary event is the right call. Let the breakdowns play out without you in them.
Charts reflect institutional and insider behavior — roughly 70-80% of large-cap volume is institutions moving size.
$DKS dropped 30% after earnings yesterday. Before the print, the chart had already broken below the 200-day moving average and was sitting under a declining 50-day. That's not a setup you want to hold through earnings.
Process over time matters more than any single outcome. One trade doesn't prove or disprove anything. What matters is whether your edge holds up across dozens of setups over months and years.
If the chart's already broken and the trend is down, stepping aside or sizing way down before a binary event is the right call. Let the breakdowns play out without you in them.
