Typically a sell signal that is generated from such a series of points in the Cotton Model leads to very good sell signals. The move lower however should begin or continue in this case straight away if this is a good signal.
This type of set up is great as it leaves nothing to chance. We know that a tight stop can be used because of the fact that cotton needs to move sharply lower now.
The Commercial Traders are very heavily short cotton and the chart looks like it wants to fall out of bed.
We are Short Dec. Cotton at 63.82, with a Buy Stop at 64.65
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