- Heikin Ashi had early signal yesterday for a possible downturn, and a firm sell signal today.
- I enterred short again. Initial tgt at 117. Initial stop at 122+, trail it with price movement.
Anyway, this theory, and the whole idea points to one thing: we must not trade our beliefs or something we think should (or have to) happen! We only have to trade what is happening, so trade the current price action and the trends, with being flexible enough to admit when something is over. So actually you can trade "black, grey or white swans". You must be prepared for them all the time, then they can not cause you any trouble.
Recently I've been reading posts from a smart analyst guy on Twitter. The other day he said stg ike this: "you must always manage your risk PRE, not post!"
This is my philosophy in trendfollowing technical analysis. It is impossible and therefor useless to predict the future. So comparing past patterns, price actions or statistics with present, or trying to apply them now to predict the future is not working.
Following the price action and the possible trend waves however is working as it has always worked in the past.
Lincoln said: "the best way to predict the future is to create it!"
Future is constantly being created. If you participate in it, then you don't have to predict it!