DislikedHere is something that I read on another thread:
You should classify any contemplated trade into one of the following five categories before putting on a position:
a. Entrance into congestion
b. A trade within a congestion
c. A breakout from a congestion area
d. A trend run
e. Trend reversal
The trader will have difficulty in formulating a successful and intelligent risk/reward (entry/exit) plan unless the trade is properly categorized before the trade is taken. [color=red]The risk/reward parameters are...Ignored
Glad you are back.
About those categories... Where did you read about them? How would they affect our trades or decision?