Follow the blue line. If it develops like the blue line, the trading pattern is being verified. Same with after entry: if the pair does not move like the blue line, I will look to get out extremely fast, with immediate closing of the trade, so I am not stuck in a trade that isn't part of the trading plan.
In essence, a simplified way to think of this is that, based on my reading of the chart, I have mapped out a path for the pair. If the pair and the map match, the trade is on, and active. If either the map or the pair goes off script, I am out of the trade.
Also, some may wonder why not trade the blue line on the way up. That is certainly a valid trade, if we are comfortable enough with how the pair is acting currently and believe that there is enough there for us to say the pair is following the script. I would just propose that if we waited for more information, we have more confirmation that our read is correct. Furthermore, the downward move would seem to have a stronger momentum. TLDR: the more it follows the blue line, the more possibility for a smooth trade.
Order cancelled
not good. Did not develop as expected
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.