brettnchrism wrote:Win one lose one. I made a mistake and went against the H4 down trend took a long position on the long z line. Lessons learned just wanted to post for any feed back.
That is a common mistake Brettnchrism
From the highest price on that chart follow these steps:
1. look at the size of all the bearish momentum bars.
2. Look at the size of the bullish momentum bars
3. look at the size of the non momentum that was followed by bearish momentum.
If it is difficult to tell the non momentum bars that preceded the bearish momentum from the bullish "momentum" then chances are that what you were considering momentum was not despite being larger than the prev. candle.
These methods are not technical patterns that you can blindly follow; they require much thought and must be considered in the context of big picture.
If you are trading the hourly you need to check the multiple hourly momentum at the very least before trading in the hourly direction.
PS: My computer blew up and will not even recognize on button. That is what I get for connecting too many wires to it...
I wanted to buy a new computer anyways, but I wasn't expecting to lose all my programs, files, & pictures