Today's candle formed a bullish Engulfing candle indicating the trend is upward. If I would have entered a Short position based upon Short Entry method number one I would have been stopped out. Recall Short Entry method number one is riskier as price more often moves against the Short position and stops the position out than Short Entry method number two or three. This happens from time to time but not all the time. Staying with Entry method number one and using it constantly can still outperform other methods over the long term.
So how do we make trade decisions based upon this candle?
The long term direction of this market is still downward, as a result, I will wait for another opportunity to enter a Short position.
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So how do we make trade decisions based upon this candle?
The long term direction of this market is still downward, as a result, I will wait for another opportunity to enter a Short position.
PLEASE GIVE ME A THUMBS UP if you agree with this trading tutorial to help me become a TOP AUTHOR. Also please leave a comment on how I can improve the tutorial.
Want a second opinion analysis on a pair you are looking to trade? Feel free to send me a private message I enjoy sharing.
