The forex market moves in waves. If we’re in an uptrend, that means the market is making higher highs and higher lows. If we’re in a downtrend, that means lower lows and lower highs are forming on the charts. In this continuous movement, if a trader is in an uptrend, they will buy low and then look to sell high for profit.
Seems simple, right? But, here’s the issue: People tend to close out their trades too early, limiting their profits or taking a loss for no reason at the slightest sign of a downtrend.
After closing out early, the market does exactly what they suspected. They end up coming out with a loss or limiting their success.
So, what’s the biggest motivator and problem that people are dealing with? FEAR!
They are so afraid of losing that they don’t allow themselves the chance to win. Many traders end up quitting trading altogether because of this issue. Don’t be another statistic. You are capable of so much more as a trader and the Counter Trendline Break strategy is here to help.
How Does the Counter Trendline Break Strategy Work
In an uptrend, an expert would want to buy low when the market pulls back after forming a buy low price. They will then use a counter trend line to trace the retracement. If the market never goes back up again, they will know not to buy, and end up not losing that trade.
With this tool, you get to enjoy the benefits of the market working for you.
This tool is two-sided. It helps you to gain profit by telling you where to buy, and prevents you from entering losing trades by telling you when not to buy in the market.
Manual vs. Automated
This tool is typically done manually. You can simply draw the line on your chart. Since it can be done manually, it can be done by any trader using nearly any software.
Josh Martinez himself even suggests working through this manually, as you will use spatial intelligence to avoid what a machine may not see on a larger scale.
At MTI, we offer The Ultimate Charting Software that could allow your indicators to assist in automation. We are always making improvements to our programs, to make sure that they are adjusted to the up-to-minute action in the market.