In an exhausted uptrend, I initiate sell trades. In a continuing uptrend, I initiate buy trades.In other words, Perspective gives me the context to decide my Stance. It is also obvious that changing the stance by initiating sell trades against the prevailing trend, resulted in joining the new downtrend early - before the downtrend was established. Obviously, trading in the direction of the prevailing uptrend at the 2007 peak can result in financial loss. It is a matter of historical record the market rapidly declined after the 2007 peak. For example, the prevailing trend in the US markets just before the 2007 peak was up. Once this can be assessed, then I can initiate a trade against the prevailing trend in the belief the current trend is exhausting, and that a new change in trend is likely to occur. It is not within the scope of this article to discuss analysis methods to determine whether the prevailing trend is likely to change. In a nutshell, this is a simplified statement on how I determine Perspective, my Trader’s timeframe trend, and therefore, my stance. In a continuing uptrend, the odds favor a buy-first strategy, and obviously, in a continuing downtrend, the odds will favor a sell-first strategy. As long as the analysis suggests that the uptrend is in place and is likely to continue, then the trading Stance is set. If the higher timeframe direction is up, the lower timeframe trend is likely to be up. The Perspective timeframes have a strong impact on the direction of the lower timeframe Trader’s Trend. Essentially, Ray’s philosophy is to identify the direction and trend of the higher timeframes (he calls this the Perspective). Perhaps I should start by expressing my thanks to Ray Barros, who taught and guided me at a crucial phase of my growth as a trader.
In order to have a comprehensive understanding of success in trading, any discussion on the Entry Trigger topic must also address the perspective and context of the underlying market condition. Although this article is focused on Entry Triggers for trade initiation, the successful trader knows that Entry Triggers are just one component of success.
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