This week there were once again some strong trends with many pairs rejecting 61, 78 levels, and breaking through their S/R 100 levels.
This is one of the weak points of the strategy unfortunately, and as it being a trend reversal base strategy in strong trends it can fail.
We can never know if it is a strong trend until it breaks S/R 100, and in that case for me it signifies a strong trend, and that is why I don’t trade past it.
The only way to avoid big losses in these kinds or market conditions is to use a good MM, and to manage your risk appropriately. This wasn’t the best week, but at least I did not lose more than I made.
Lets hope the new week ahead will be better.
Do the opposite of the 95% and be part of the 5%.