Crossing the bridge

Last weekend I had a signal to close a position that I had only opened the week before. This false signal cost me money, but I was happy to be back into cash, because I suspect that the market is going to go down. At one point this week the share-price of the fund that I use to get exposure to equities was signalling another buy, but thankfully by the end of the week it closed below the green line, my 'line in the sand', and I am staying in cash this week.

My green line indicator is a bit like a weak bridge: It's quite a big deal to cross it. If the share price ends up on the other side of the bridge at the end of the week, then this is quite a powerful signal for me, and I want to cross the bridge and either open a position or close one, depending on which way it is going. I don't like hanging around on the bridge though, it feels dangerous!


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