Over the past days, I have been curiously listening to traders who bought the GBPCAD way too early and got squeezed all the way beyond the last swing low.
It is a beautiful and classic setup and a good lesson to learn - just the fact that price is trading into a previous low is NOT a good enough reason to speculate on a turnaround. Our 20 SMA is keeping us out of any trouble nicely. It's such a simple rule but one that will always keep you out of troubles.
Price is setting up for a reversal but the amateur is as always too early and then once the real reversal happens, they are on the sidelines because they lost too much money and/or are emotionally burned.
This is such a classic amateur squeeze pattern and it's a beautiful learning experience.
It is a beautiful and classic setup and a good lesson to learn - just the fact that price is trading into a previous low is NOT a good enough reason to speculate on a turnaround. Our 20 SMA is keeping us out of any trouble nicely. It's such a simple rule but one that will always keep you out of troubles.
Price is setting up for a reversal but the amateur is as always too early and then once the real reversal happens, they are on the sidelines because they lost too much money and/or are emotionally burned.
This is such a classic amateur squeeze pattern and it's a beautiful learning experience.
I have been trading for 15 years!
> Trend Rider indicator: tradeciety.com/trend-rider-indicator/
> Free weekly trading webinar: www.tradeciety.com/webinar/
> Free blog: www.tradeciety.com/blog
> Trend Rider indicator: tradeciety.com/trend-rider-indicator/
> Free weekly trading webinar: www.tradeciety.com/webinar/
> Free blog: www.tradeciety.com/blog