FOMO (= fear of missing out) is a common reason why most new unexperienced traders can't get the most out of a correct forecast.
It's so easy to check a HTF chart and say "Price will go down" and think you're a genius. However when you get in a trade you'll realize that, yeah, price goes in favour of your bias but you're not the trade anymore, because you most possibly got stopped out.
Most of the times, unless major news drive the market in short-term a breakout is never *that* strong to go far without a retest. Momentum is needed in order to continue the movement. That's why retests happen, before powerful breakouts. So after any breakout always wait for a retest on the S/R - dynamic or not - or a recent Hi/Lo.
In this chart, USDCHF broke a long term bullish run strongly to the downside. Many traders hopped in without any second thought because they're afraid they'll not see a retest happening.
Personally I always try to make use of Fibs and price structure to find a level that price is likely to retest at before continuing the movement. In this pair I've annotated the recent Lows cluster that line up with the 50.0% of the bearish leg and, possibly if we get a nice timing, the trendline as well.
Also you might don't want to sell USDCHF right now as 2H RSI is already very overbought, so big sellers would really love to the see that be neutral, to open a selling position.
Hope I helped you! Leave a comment if you liked my idea! :)
It's so easy to check a HTF chart and say "Price will go down" and think you're a genius. However when you get in a trade you'll realize that, yeah, price goes in favour of your bias but you're not the trade anymore, because you most possibly got stopped out.
Most of the times, unless major news drive the market in short-term a breakout is never *that* strong to go far without a retest. Momentum is needed in order to continue the movement. That's why retests happen, before powerful breakouts. So after any breakout always wait for a retest on the S/R - dynamic or not - or a recent Hi/Lo.
In this chart, USDCHF broke a long term bullish run strongly to the downside. Many traders hopped in without any second thought because they're afraid they'll not see a retest happening.
Personally I always try to make use of Fibs and price structure to find a level that price is likely to retest at before continuing the movement. In this pair I've annotated the recent Lows cluster that line up with the 50.0% of the bearish leg and, possibly if we get a nice timing, the trendline as well.
Also you might don't want to sell USDCHF right now as 2H RSI is already very overbought, so big sellers would really love to the see that be neutral, to open a selling position.
Hope I helped you! Leave a comment if you liked my idea! :)
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Disclaimer
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.