High risk selling opportunitiesUsing trend lines to determine bullish or bearish stance on the charts seems like pre-schools stuff, it is a no brainer as some traders might say.
Break out of bullish trend = sell, break out of bearish trend = buy.
In a way, they are right but it is more than that. Take Walmart as an example. It is enjoying a nice bullish run since the 1990s, whether you view it on monthly, weekly or daily chart.
Thus, any traders who attempt to short ,say on the 4H chart where the blue rectangle is IS taking a huge risks. Yes, smaller time frame may gives you the opportunity but because the bullish moves on bigger time frame is so strong, it dictates the moves of the smaller timeframe as well.
Of course, if you look at other stock charts, it may not be the case as each stock behaves differently.
My point is employing a counter-trend strategy , ie shorting in a bullish direction is high risk, requires you to be nimble and highly alert to the price action to enjoy the profits.
I have shown you several examples ( here and here ) where you can short easily and make good profits.
