What is the probability of a pullback? Cut your losses smartlyIf people expect an Inverted Head & Shoulders, chances could be very meager in terms of probability. What is the % of chance that we go back to 12xxx? How much time would it take? What would be the bullish triggers, if any? The markets took quite a bit of time and strength to break through the support I've drawn around 11183. If you were long above any support lines and didn't cut, unless you are playing huge bets and that everything is still going according to your original plan, then you should consider cutting quickly any losses from long positions above the support that could become a resistance. Accept the losses, and go again with the trend afresh. You don't want that burden.
If anyone tells me that the current daily trend is bullish, then I should reasses my understanding of a bullish trend. Be nimble in cutting losses when it clearly goes against you. There's a lot of readings about risk and money management that are available. Don't let cognitive biases overwhelm you.
