Trends

TrendsLeçon 4 sur 94 min de lecture

Direction not entry

The trend tells you which way to trade, not where to get in. Buying the moment a high is beaten is the standard way to be right and still lose.

Knowing the direction is not the same as knowing where to enter. This lesson is about the gap between those two things.

What the trend actually tells you

The trend gives you one piece of information: which side to be looking for.

In an uptrend you are looking for buys. In a downtrend you are looking for sells. It says nothing about the price you should be getting in at.

The trend picks the side. It does not pick the moment.

Buying the break is how you get stopped

The obvious idea is to buy the moment price pushes above the previous high. It is also the standard way to take an unnecessary loss.

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