Hello friends,
The universal law of reactions and rally govern all the markets. Isn't it ?
In an uptrend , stocks or commo or any financial instruments react and then resume uptrend.
Same as in downtrend, there are rallies and down move continues.
Now the best trading strategy would be to buy reactions in an uptrend and sell rallies in a down trend
But is there any high probability way to buy reaction or sell rally?
the apparent reactions or rallies are many times not a part of trend and traders are traped because of sideways and contradictory moves.
Yes , i know by this time many of you will say:
Elliotticians: look at waves 2 and 4----always subjective
Fib Fans: retracements.----dont know which retarcement market will resume trend, and if there is retracement of any significance...will the swing break result genuine move??
Classical TA: indicators and patterns. consantly change their systems.
Modern TA: mixture of above.-----all above difficulties
and many other systems.
But as any market trend for 25-30% time, it becomes really difficult task to identify real reaction and rally in any time frame.
Is there a simple rule based trading to buy a reaction or sell rally which will result into true upmove or true down move and can this be done on consistent basis.
Regards,
Winston
The universal law of reactions and rally govern all the markets. Isn't it ?
In an uptrend , stocks or commo or any financial instruments react and then resume uptrend.
Same as in downtrend, there are rallies and down move continues.
Now the best trading strategy would be to buy reactions in an uptrend and sell rallies in a down trend
But is there any high probability way to buy reaction or sell rally?
the apparent reactions or rallies are many times not a part of trend and traders are traped because of sideways and contradictory moves.
Yes , i know by this time many of you will say:
Elliotticians: look at waves 2 and 4----always subjective
Fib Fans: retracements.----dont know which retarcement market will resume trend, and if there is retracement of any significance...will the swing break result genuine move??
Classical TA: indicators and patterns. consantly change their systems.
Modern TA: mixture of above.-----all above difficulties
and many other systems.
But as any market trend for 25-30% time, it becomes really difficult task to identify real reaction and rally in any time frame.
Is there a simple rule based trading to buy a reaction or sell rally which will result into true upmove or true down move and can this be done on consistent basis.
Regards,
Winston