medium · Volume Spread Analysis wyckoff-phases-schematics
If you are following a simple trending system and the index shows multiple signs of distribution, but your individual stock continues to close higher, what is the best practice?
- Sell the stock short and rotate into the index at what appears to be new lows.
- Ignore the broader index entirely and stay long until the individual stock itself closes lower on the day.
- Tighten stops and prepare to exit, as the index weakness will eventually pull the stock down.
- Short the stock immediately, since the index has already put in its final peak.
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