As I have said a hundred times, this is a game of chess. If you only focus on what you are going to do, you are going to be mated quickly. “OMG the trendline was breached. I am going to buy some puts!” That is how most retail traders think. Your opponent is thinking, “If I can poke through that D1 trendline I can lure a bunch of shorts in and then try to squeeze them. They have no staying power there because then we will be back above that trendline and they will be afraid that it confirms support and they will cover for a loss.” The seasoned trader shorts the high today on signs of resistance that that trendline will be breached. He treads cautiously at the trendline and waits for a breakdown and then continuation to confirm the selling pressure.
1 min read
Mark As Read
Share post
Like post