Disliked{quote} Nice example. I always trade the trends. I have some rules for myself that can be useful for others too: 1- I use Fibonacci retracement and do not take the signals which are beyond 78.6. 2- I use a CCI 8 to show me whether the retracement is valid or not. (if the signal is very good I may ignore this read the rest for more info). If we are in a down trend and we have a CCI over or near 100 level the retracement is valid if it couldn't force the CCI to go above the 0 line the retracement is too weak. 3- the signal bar should show me the retracement...Ignored
I guess many traders operate against the trend because if they catch the new trend thenthey will get a lot of pips with lower risk, and it is truth...the only problem is they are right maybe 10% of the time, usually trends last for a while, so they get burned once and again hoping their luck changes...and even worse they keep moving the SL hoping luck changes.
Follow trends, buy cheap and sell expensive, thatīs it...oh, and set the SL in the right place (donīt be so cheap, but donīt be so loose either).