7/7/2022 In Review; Mistakes Made, Double Tops, and Bear Traps
Just reviewing today. I'll post a better analysis tomorrow morning when I see what the market does overnight. That being said, I mention how I slightly deviated from my risk management plan and stuck out a trade late in the day today (short 3893) past what I normally would. It appears I'll be able to remedy the mistake or at least correct it for a small loss instead of a larger one, but I can absolutely say that was uncharacteristic of me and I feel like I traded today in some fashion like I did when I started trading years ago.
However, it is always a good reminder when you get frustrated or start trading off of "feelings" and not your trading strategy, that you should walk away.
I then explain how the consistent fluctuation of the longer timeframe trends is abnormal, and that I reviewed when the last time I'd had the 4-Hour and 6-Hour trends reverse this often. The answer is a VERY classic double top that occurred during the first half of February.
Of the 16 6-Hour Trend signals I've gotten all year, 3 of them have been in the past few days. Likewise, there has only been 22 4-Hour Trend Indicators in the entire year, and 3 of those have also been in the last few days.
Lastly I show have you can use indicators, such as RSI or MFI, to spot Bear Traps by seeing Bearish Divergence, if you're interested. It shows how you can get faked out by an uptrend that might actually be a bear trap that will send you lower.
Extremely low volume, classic bearish market patterns, price rally with overall bad economic news... My sentiment, you guessed it, continues to be bearish.
However, it is always a good reminder when you get frustrated or start trading off of "feelings" and not your trading strategy, that you should walk away.
I then explain how the consistent fluctuation of the longer timeframe trends is abnormal, and that I reviewed when the last time I'd had the 4-Hour and 6-Hour trends reverse this often. The answer is a VERY classic double top that occurred during the first half of February.
Of the 16 6-Hour Trend signals I've gotten all year, 3 of them have been in the past few days. Likewise, there has only been 22 4-Hour Trend Indicators in the entire year, and 3 of those have also been in the last few days.
Lastly I show have you can use indicators, such as RSI or MFI, to spot Bear Traps by seeing Bearish Divergence, if you're interested. It shows how you can get faked out by an uptrend that might actually be a bear trap that will send you lower.
Extremely low volume, classic bearish market patterns, price rally with overall bad economic news... My sentiment, you guessed it, continues to be bearish.