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RE: Thoughts on trading analysis and signals

in #trading7 years ago

This is really engaging and educating, glad you shared.
Really true and i urge us to adhere to them. ​The best piece of advice I could tell anyone who is new to the markets is to understand that "The trend is your friend". To ignore this is like attempting to swim against the tide. It's Hard work, frustrating, and you will increase your chances of failure.

If we can identify the trend direction (and it's always best to look to a larger time frame), then we can confidently buy the pullbacks or sell the spikes as they occur within the trend.

For example, if we were trading to the long side then we would look to buy at or near support levels or at the lower edges of the trend channels. It is at these places within an uptrend that the risk to reward ratios are most favorable. The opposite of course is true for those wanting to short sell.

Hopefully you can see from this, the importance of trading in harmony with the direction of the main underlying trend. keep up the good work @acidyo