This morning GDX broke the 2 day DT line on the 5 minute chart. I tricked in with 2 entries. So far so good. However, I exited as soon as the RSI hit 70 (see the vertical line). Look what I have missed: 3.8% with the 20 ma still in tact !! My then twisted psychology even further caused me to sell my core 50 shares later on. Finally I had to chase with a 10 share Band-Aid for psycho-therapy. Quite pathetic.
Of course, I’m not as brainless as it may seem. The overall market has been overbought and clinging near the top for a few days by now. On the daily chart, where I sold was where the DT line was, and yesterday’s daily candle was a head fake breakout and ended up with the shooting star. So I was too fearful of the DT line on the daily chart. Combined with the 5 minute RSI > 70 caused my position to be shaken out. I should have at least wait for a reversal candle or other kind of failure on the price before I bailed out my positions. But I could tell my fear of losing my profits, however small.
Here’s the daily chart for GDX: