Red Candle

NEVER buy on a red candle! The market is selling, and noone knows where the selling will stop.  Bottompicking is a losing strategy.  Your goal is to move with the market and not against it.  In his book “Long-term secrets to short-term trading”, Larry Williams quotes an old market speculator as saying…

“Do not try to catch falling swords.  Wait until they hit the ground and stop wobbling.”

This metaphor has more relevance to trading than many people suspect