It common to Day trader. Are you always aware of long term leg? Have you ever jumped on temporary movements? In fact, short term price movement is only temporary movement. The market will always head to the day term leg. Today I would like you to be aware of for those who tend to trade on short term leg.
When the short term leg is down but long term leg is up.
the short term leg is down.
If the long term leg has an opposite pattern, long term bar will head to the final direction. In other words, short term leg movement is only temporary movement. It is a good idea to wait for your entry until bar comes back. When you start trade, you should check the first direction of the chart.
The exception is the timing of the trend change.
There are times when this view does not fit. It is time for the trend to change. This is a phenomenon that you should be aware of when the big trend continues. In foreign exchange case, it moves largely unilaterally. The reaction of trying to return it will always work somewhere. Be careful when the chart is moving unilaterally.