If the trend on the higher timeframe is up, Then buy the lower timeframe reaction’s failure. Set a buy stop order 1 tick above the lower high, Then put a SL below the last lower low. It’s likely going to retrace though ... Move your SL up on each higher low. Every time the market make a higher high. It’s not a higher low until the market made a higher or equal high. This is what PA is for me. It’s timeframes, intermaket analysis, Highs and Lows. So it’s not even about predicting, It’s about squeezing your reward to risk. And recognizing dangers signals over TFs and markets.
Why are traders afraid of the word prediction? It just cracks me up! It is like the dirtiest word in the trading world.
Lol You would not be taking a position if you were not trying to predict or forecast the likelihood of the position rendering a profit. By taking a position via a setup you are making a statement about the direction of the market. You are predicting the larger TF movement will resume because you are guessing the lower TF is just Reaction or PB and with it’s failure price will likely resume the trend, otherwise, you would take a short position or take no position at all. 1 : an act of saying what will or might happen in the future prediction of earthquakes. 2 : a statement about what will or might happen in the future a weather prediction. Prediction | Definition of Prediction by Merriam-Webster A prediction is what someone thinks will happen. A prediction is a forecast, but not only about the weather. ... So a prediction is a statement about the future. It's a guess, sometimes based on facts or evidence, but not always. prediction - Dictionary Definition : Vocabulary.com https://www.vocabulary.com › dictionary › predicti
You know there is nothing wrong with SAYING “i was wrong on my trade.” “In the same manner nothing wrong with SAYING my prediction didn’t pan out!” HOWEVER THERE MAY BE PROBLEMS IF EITHER (the trade or the prediction)DOESN’T pan out! Like loss of $$$$$...loss of wife......loss of bedroom....loss of meals cooked by pretty wife......laughed to scorn....bullied....mocked.....ad nauseam. In Master Pu’s case lost of fictional life.
A prediction makes you right or wrong. An edge means you can be wrong more often than you're right and still make money. A set-up with an edge means that you make more when you're right than you lose when you're wrong. When I see a set-up, I can't with any accuracy predict which way the market will go. What I can predict is how I will react.
Everyone will be right or wrong. There is no such thing as right “all the time.” Nothing wrong with saying “I was wrong”. Just by taking a position you are in effect making a prediction. It is the samathing...samathing...samathing! Most traders can’t even predict accurately how they will react even though they may try.....they often will fail....because the emotional factor overrides their better judgement.