1) Just because price did something, does not mean that it's any more likely to do something in the short or long term future.
2) There is no "trend." The market has just as much of a chance of continuing in your predicted direction as it does reversing at the time you enter, or at any point after you enter.
Understanding these two things was the turning point in my trading.
And it goes without saying that indicators aren't goint to help you. See #1. Indicators just tell you when price has done a specific thing, usually relative to what it was just doing. 90% of indicators really only tell you if price is higher or lower than it was x bars ago. People add ambiguous information to them to make them seem specific, like an 80 or 20 line, and then say "above 80 is oversold!" (except for all the times when price hits 80 and then keeps going up) or whatever, as if that's going to help anyone trade. It's all nonsense. But you won't believe this until you test them all yourself, reverse engineer the ones that vendors try to sell you, and then create your own. And the reason you won't believe it is because they all look so good on paper and in hindsight. But how are they working for you in real time?
Good luck.
2) There is no "trend." The market has just as much of a chance of continuing in your predicted direction as it does reversing at the time you enter, or at any point after you enter.
Understanding these two things was the turning point in my trading.
And it goes without saying that indicators aren't goint to help you. See #1. Indicators just tell you when price has done a specific thing, usually relative to what it was just doing. 90% of indicators really only tell you if price is higher or lower than it was x bars ago. People add ambiguous information to them to make them seem specific, like an 80 or 20 line, and then say "above 80 is oversold!" (except for all the times when price hits 80 and then keeps going up) or whatever, as if that's going to help anyone trade. It's all nonsense. But you won't believe this until you test them all yourself, reverse engineer the ones that vendors try to sell you, and then create your own. And the reason you won't believe it is because they all look so good on paper and in hindsight. But how are they working for you in real time?
Good luck.
