Fighting the Background Strength/Weakness and/or Trend will LEAD to HEAT and LOSES!!!!
When you have Strength in the Background (ie. Bullish Exhuastion on the Higher time Frames 13500 tick, 135, 40500 tick, 4500 tick)
it is ALWAYS wise to trade in this direction. NO MATTER HOW MANY SELL SIGNAL SHOW UP!!!
PRICE HAS THE FINAL WORD ON MOVEMENT!!
Seems obvious But one should be very mindful of this as in the past I tend to allow Signals and Information to lead us to believe that our analysis is correct for an impending move and that we should be rewarded for it. THIS WILL LEAD TO BEING STOPPED OUT 90% OF THE TIME.
A correct Analysis DOES NOT LEAD TO PROFIT!! How many times have you been RIGHT but still stopped out?
due to timing?
What leads to PROFIT is a correct REACTION TO PRICE AS IS RELEVENT TO THAT MOMENT!!!
This Chart shows a perfect example
Had You Entered at the area of Resistance (4500Tick) with High Volume Stepping in at around 1326.75 your position would have taken unnecessary HEAT or been stopped out!! barring you had a 2 point stop. Although This appears to be the perfect Reversal, It may take a while to play out. Like Overnight Session or Next Day if at all!
Solution:
#1 Remember where the Strength is and stick to that (Follow the Trend) In this case is UP as we have round bottoms and Exhaustion signals on higher time frames in the Background!!
#2 Review the Background of the chart!! You are looking for an OLD top (for Shorts) in this area (as you can see there isn't one hear) OLD TOP is defines as a previous area of Resistance from Days, Weeks or Months ago that is now being retested. NOT AN INTRA-DAY TOP!! With Strength in the Background. **UNLESS ALL THINGS LINE UP AND YOU ARE WILLING TO TAKE THIS RISK!! if so then be Very Patient and think long term pressure with Heavy HEAT to endure..
#3 Pay Attention to actual PRICE!! in this case it never really sold off dispite ALL THE SELL SIGNS!! ( Note the 1500/500 tick) is steadily creaping up, it would be better to WAIT for a pull back to re-enter long with the Trend.