Several traders conduct maintain asked me to resolve a seeming contradiction: On 1 hand, I post service indicators that rails the market's tendency status; on the other hand, I propose that tendency next does non run in addition to that one should move cautious inward trading what they see.
The resolution of this lawsuit represents what has been, for me, the unmarried best contributor to the profitability of my trading inward the concluding duo of years.
And hither it is, inward all its simplicity:
I merchandise alongside the trend.
I execute the merchandise countertrend.
That is, if I position an uptrend at fourth dimension frame X, I await for a pullback at fourth dimension frame (X-1) to motility into the marketplace on the long side. If I position a downtrend at fourth dimension frame X, I await for a bounce at fourth dimension frame (X-1) to motility into the marketplace on the curt side.
If I'm a buyer, I await for the sellers to accept their plough inward the marketplace in addition to present me what they've got. If they cannot force the marketplace below a prior depression reference point, I'll purchase in addition to role that reference betoken equally a stop.
If I'm a seller, I allow the buyers rally the marketplace in addition to present me how far they tin accept it. If the buying dries upward below a reference prior high, I'll sell in addition to role that reference surface area equally a stop.
If nosotros conduct maintain a expert trending deed in addition to a weak countertrend dip or bounce, we'll commonly at to the lowest degree exam the prior highs or lows. That agency that fifty-fifty a merchandise that doesn't roar to novel highs or lows tin frequently move exited alongside only about profit.
That execution border tin brand all the departure inward price of profitability; it has for me.
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