resistance=rejection of price = CLOSED body only in direction of profit. It's our focus on the Illusion that drains my wallet.
knowing something and being able to SEE something is much different than being able to act upon it.
The reason psychology plays such a huge roll in the making of a consistently profitable trader.
Perfect example below:
I SAW that we had a big momo M15 candle(4). I knew that the forming wick(3) was in the direction of loss and the previous body was in the direction of profit(4).
That candle closed in the direction of profit(3). I did not enter at the sitdown price of the previous candle. The LAST candle(2) opened and formed a wick in the direction of loss, as expected.
Again, I did not enter at the "sit down" price or when it got back to the pivot, 1/3 dot, or even the previous close(sit down price). All these were signals to enter long.
(1) also closed in the direction of profit with a wick in the direction of loss. These signals and taking a trade with multiple entries would make an entire trading day. 40ish pips easy if acted upon. 1hr. trading and it happens all the time.
Why did I not enter??
FEAR OF LOSS. What else could it be? Now we have 3 candles and a buzzard possibility. To late to enter in my book. Loss would ensue for sure unless you've set a 50 pip stop.
BTW, the very last arrow that is on the green wick is on the wrong end. Look at the momo bar to the left. Price may have backed up but may still go short. ILLUSION at the moment. I see that it is actually going long currently but this does not normally happen with such a big previous momo bar. From what I've seen anyway.
Joy's of trading!!!!
Anything can happen.