ways to correctly recognize pullback/reversal

Discussion in 'Trading' started by trader198, Sep 19, 2012.

  1. NoDoji

    NoDoji

    Since I trade oil and have the daily chart handy, I'll tell you why that last initial "pullback" (9/17) raised a big warning flag for the bulls: Price erased 5 days' gains in a single day. In a trend, you want to see an orderly pullback, not a single price bar that tells you everyone wants to take profits at once. So you then wait for more clarity to see who's in control. There hasn't been a trend continuation signal since.

    When you trade your thoughts and emotions, you're betting blindly.

    To improve the odds, compile stats and create a plan that places the odds in your favor. Then you won't have to think or feel; you'll simply recognize and react.

    If you haven't read Trading in the Zone, read it several times.

    If you've read it and don't like it, you've a long uphill climb ahead of you.
     
    #11     Sep 20, 2012
    Datum likes this.