IgazI wrote:What is right and wrong? does not compute
Up or down? draw a trend line. . .and nobody gets to tell you how it should be done.
In? did price move out of it at some point?
Out? what was price "in" at some point? what did it exit?
You can only draw a TL, mentally or otherwise, and trade with it and up or with it and down; trading "out" of something.
If price chose to move down and out from #2, breaking the up-trend, then you would have looked like a fking genius; but there is no way to know that in advance, you just have to do what price is doing.
Knowing where this trade exists on the hourly chart and whether you would want to take that chart long or short makes all the difference in the world; you should always allow for the opportunity of a trade going on a multi day trend. . ."lucking" my way into big trades is a good description of what I do.
up_out_dn_out.jpg
The basis of anchor trade.
