The markets have been running up, and as we’ve been sitting at all-time highs (ATH) it’s finally time for a pullback. Any time we approach the 2 to 3 average true range (ATR) Keltner Channel band, take this as a sign to pump the brakes. There are still opportunities to enter long positions, but be very timely and methodical around this high territory. Understand we’re approaching levels of resistance, and the markets need a healthy pullback.
While there are times that we can run through this 3 ATR level, we want to focus on moves that provide consistency that we can build a reliable trading business around. Be patient, and attack the market day-by-day until we have an efficient reset. Check out the video above for a detailed view of how to prepare for this rotation with confidence.
Stay Focused!