There are always reasons not to take a trade.
You have to take a 'weight of evidence' approach - and you'll still often be wrong ;)
The idea: Trade GBP/USD short on a daily close below critical support. Looking for 2:1 RR
Reasons for:
Reasons against:
The nice thing about trading, you don't have to stay wrong.
If this breakdown trade fails - it tells us the market has strength.
So then we can wait to trade a break above resistance or a fractal
You have to take a 'weight of evidence' approach - and you'll still often be wrong ;)
The idea: Trade GBP/USD short on a daily close below critical support. Looking for 2:1 RR
Reasons for:
- Trend is lower (falling fractals / price below the 50 DMA)
- Momentum is to the downside (MACD below zero)
- If the break holds, then long term trend has turned to a downtrend, adding more force to the short term downtrend.
Reasons against:
- Already had a big move lower
- Longer term trend has been up - this maybe an exaggerated pullback.
The nice thing about trading, you don't have to stay wrong.
If this breakdown trade fails - it tells us the market has strength.
So then we can wait to trade a break above resistance or a fractal
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Market Analyst for:
WeTrade
wetradebroker.com/education/analysis/jasper/
SpreadEx
spreadex.com/financials
tradingwriters.substack.com/
Market Analyst for:
WeTrade
wetradebroker.com/education/analysis/jasper/
SpreadEx
spreadex.com/financials
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Signup to my newsletter:
tradingwriters.substack.com/
Market Analyst for:
WeTrade
wetradebroker.com/education/analysis/jasper/
SpreadEx
spreadex.com/financials
tradingwriters.substack.com/
Market Analyst for:
WeTrade
wetradebroker.com/education/analysis/jasper/
SpreadEx
spreadex.com/financials
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.