DislikedHi Rufus
I was watching the first trade you have in your pic and was thinking,is this one for me to take,but I didn't take it in the end. I looked at macd rising but stoch looked over bought for me to have any confidence in taking this trade.You profited well in taking it,but why did you feel confident in taking it?
On the second on the down trend,did you end your trade shortly when stoch went back up shortly.if not,how did you know the trend was going to continue back down to demand zone?Ignored
You have to get into the habbit of seeing the whole chart in multiple time frames.
The first was a bounce off of a supply area you see on the 4h chart. I was confident with this position because it was the first time back to this level. My concern with it was the 3800 level above it and the fact that I was trading this jump counter trend durring Asian market which seems to die at times for no apparent reason. So I took profit quickly.
The second was riskier to me. I almost closed it out at a small loss. But price will often (NOT ALWAYS) bounce off "00" So my stop was north of it a bit. Also the overall trend was down.. I was not as confident with this one but it still worked out. That day was a tough trading day. I happened to grab two of the three or four good signals and make out well.
Remember we are not going to win all. We just want more profit then losses.
We also can not become fixated on something so that we don't see other things around it. Stochs. and MACD are lagging indicators. So with a counter trend trade they often will not be telling you what to do. They at this point will lie. This is why it is so important to recognize all potential support and resistance.
Hope this is of some help.
Rufus
Illegitimi non carborundum - Noli pati a scelestis opprimi.