ways to correctly recognize pullback/reversal

Quote from trader198:

those days, everyone here may notice USO. before the drop, the trend is going up, the chart seems to say we are going higher. but it suddenly removed all the runup in months.

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.

Quote from trader198:

I thought it will drop...

...this PPHM trade encouraged me about ZLC trade.

...those things made me feel at loss what to do. I know it is just odd. but still want to improve the odd, do not want to bet blindly. I easily let my holding control what I look and think.

...that made me nervous.

...my expectation is...

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.
 
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