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For nearly two years, I struggled with identifying reversals and pullbacks.
I didn't know whether I was trading with the trend or against it.
I wish I had learned my own trading decisions would be built around the 3 cycles of trend.
Trend Continuation
The natural flow of price movement. Years ago I didn't understand the trend, my friend. This statement revealed I should focus on 1 general direction to enter my trades vs trading in both directions simultaneously.
Retracements
The pullback against the natural flow of price movement. When I realized pullbacks were ballgames for countertrend traders, I found I was losing my trades because I was countertrend trading.
It's safe to say I don't do that much now.
Reversals
The trend switcher. I made reversals my friend instead of my enemy. When price reverses, I'd generally get stopped out and trade the opposite direction until I realized that was what I needed to do.
So now, I use the reversals to trade the direction I trade-in.
Stop losses feel good when they are hit, but let it tell you to reverse the direction of your trade-in.
So, my trading friend, keep the trend cycles simple. You'll make better trading decisions if you know the cycle price is moving in.
-Shaquan