A couple of week’s agone, I announce up some fast notes with
reference to some trend following rules so as to urge this diary moving once
more. Today, I’m virtually writing a response to a matter I received within the
comments. Like most queries i buy, they're not simply answered in one or 2
sentences. However as a result of the case is thus delicate and tough to
navigate, I needed to explore it any.
The question was with reference as to whether or not trends
can continue or fail once a flag is seen going against them. Many traders get
adorned abreast of this idea and UN free in what typically turns into a really
ugly scenario. Here is that the chart (copied from last week’s post) in
question:
Essentially we've got what's usually thought to be a
“bullish” flag created within the backcloth of a a lot of macro, pessimistic
atmosphere. The flag fails, triggering plenty of orders prime for dissection,
and therefore the trend continues lower.
