Wednesday 6 August 2014

R-1: Perhaps a New Rule To Be Implemented

So shorted the EU but price had previously made a higher low and it quickly got stopped out and reversed on a SAR of the trade. Al Brooks was always saying how you have to stay with the trend despite your doubts because when short the last low will be tested (high if long).  However when price makes a HL (like in my trade) this shows definite weakness from the bears and is perhaps a strong enough reason to pass on the with trend trade.
Possible Rules to add... We'll see..
1. in a downtrend stop taking short setups when price makes a Higher Low
2. in an uptrend stop taking short setups when price makes a Higher Low

EU Trade

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