People love to be right. Especially when it comes to the stock market. Trying to pick tops and bottoms is the ruin of many traders. Don’t bother trying. I spent years trying before I realized it is a fools game. Instead read the moving averages and indicators. What are they telling you?
Look at the chart of the Dow Jones below. Your signal to take profits was about 10 trade days ago. RSI went overbought, MACD and TSI rolled over. That was your signal to lock in some of the great gain you would have had. Do we close out the trade or go short? NO!…stay with the trade because the 5 ema, 20 sma and 50 ma are all in proper alignment. Now price is trading sideways in a month long consolidation. Markets rarely take that long to roll over and sell off. Bullish!
The 50 ma is sloping straight up…so NO shorting….lock in profit yes….sell all NO….wait and see how this consolidation plays out. If we break below and close below the Dec 30th low that would be your sign this run might be done and you should close the trade.