Tuesday, March 29, 2011

How to be on the right side of the market, determining trend / direction

We utilize our bigger picture charts for trend / direction determination. We only trade in the direction of our bigger picture charts, disregarding short signals, until we get an actual short direction confirmation. We establish our points of interest on our 5 min chart and consider every pullback in price a pullback, not a trend reversal right away. If this pullback is confirmed to be a trend reversal, we take trades in the direction of the new trend, until that direction is invalidated.

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