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, that´s it...oh, and set the SL in the right place (don´t be so cheap, but don´t be so loose either).