Morning Panic - When to react and when Not?

[fiezmlrp76]

Hello Everyone,

I am new member here and would like to welcome myself.

[foncmgvl95]

There is no real way to know. Sometimes a pullback is simply a healthy thing. However, momentum technical indicators such as RSI and MACD can help you. A lot of times just watching an L2 and volume can help. Mostly though, ust keeping in mind your broader term plan and maintaining a certain level of market awareness, is probably best. I don't know what the ticker is you posted a picture of but based on that chart it seems pretty clear the move was obvious, so unless some other thing changed, you would just let things work themselves out. With practice too you get more used to not freaking out by every little move.

[fzdhzaew60]

There is no way to "know". You just have to pick your spot. For every one of those continuations you find I can show you you a full on rally back to new high of the day...especially on a day like today
Before you even enter the trade you should have an idea of how much you are willing to lose...and maybe even how much you are trying to win.

[DonateloFed]

Acstudio I am trying to match your reply with my question as I believe not everything you wrote is directly related to my question. Now like to check if my understanding of your reply is correct but firstly, I would like to repeat the question I was asking:

How to know, while being in short position, if situation I circled with yellow color on screenshot is really morning panic (means i don't exit because downtrend will be back) or fake morning panic (real uptrend, must exist shorting position immediately).

I am asking you if the following 3 points for my understanding of your post is correct: