The chart shows development of a serious 4H trend south. Price now struggling out of an RSI trench and could be forming a reversal or rebellion pattern.
Generally RSI trenches are not places to go short, as basically you're late in the game. Of course price could disrespect the RSI - I've seen that happen - but generally initiating a short in a RSI trench (with a probably rebellion pattern) is low gain and risky.
My plan to tackle this:
1. Avoid FOMO.
2. Wait for a position of advantage - if price returns near a flattened area of the ATR (amber line).
3. If price gets there in a rebellion, then I short with for a controlled loss.
Sorry I don't give specifics nor do I give advice. I give my opinion which is quite often wrong.
Disclaimer: This is not advice or encouragement to trade securities or any asset class. This is not investment advice. Chart positions shown are not suggestions intended to assure you of an advantage. No predictions and no guarantees are supplied or implied. The author trades mostly trend following set ups which have a low win rate of approximately 40%. Heavy losses can be expected if trading live accounts or investing in any asset class. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
Generally RSI trenches are not places to go short, as basically you're late in the game. Of course price could disrespect the RSI - I've seen that happen - but generally initiating a short in a RSI trench (with a probably rebellion pattern) is low gain and risky.
My plan to tackle this:
1. Avoid FOMO.
2. Wait for a position of advantage - if price returns near a flattened area of the ATR (amber line).
3. If price gets there in a rebellion, then I short with for a controlled loss.
Sorry I don't give specifics nor do I give advice. I give my opinion which is quite often wrong.
Disclaimer: This is not advice or encouragement to trade securities or any asset class. This is not investment advice. Chart positions shown are not suggestions intended to assure you of an advantage. No predictions and no guarantees are supplied or implied. The author trades mostly trend following set ups which have a low win rate of approximately 40%. Heavy losses can be expected if trading live accounts or investing in any asset class. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
Comment:
Nice
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