Market installed a series of higher highs and higher lows. This is a definition of an uptrend. Typically retracements in an uptrend stop at previous higher high. There are two main opportunities on the chart: Trend Continuation and Counter Trend. A Trend continuation opportunity gives larger profits in terms of price movement. With trend continuation approach it is enough to catch one big move that will cover all previous losses and leave you on the green side for the year. Counter trend opportunity gives you a better probability of a win but it's movement potential is limited.
So, what would you prefer? Potential big wins that happen seldom or much smaller wins that happen more often?
So, what would you prefer? Potential big wins that happen seldom or much smaller wins that happen more often?
