Mindset & Psychology Vs Technical Analysis Discipline
It is common for trader who started selling short at A and has been enjoying good profit all the way down to B, feels aggressive and open more trades at B for Sell Short.
But soon the market turns against him as shown in the yellow box. not known to the trader at the time of trading.
Some technical analysis was used e.g. using trendlines, and it seems obvious that based on the trendlines the market will continue to be bearish as shown in the red thick afrrow, down to the bottom support.
As a disciplined technical analysis trader, the support line at B should be observed and should wait for clearer signals market is going down further.
Do you have other signals you can read to anticipate a bullish rebound?
Andrew
But soon the market turns against him as shown in the yellow box. not known to the trader at the time of trading.
Some technical analysis was used e.g. using trendlines, and it seems obvious that based on the trendlines the market will continue to be bearish as shown in the red thick afrrow, down to the bottom support.
As a disciplined technical analysis trader, the support line at B should be observed and should wait for clearer signals market is going down further.
Do you have other signals you can read to anticipate a bullish rebound?
Andrew