Australian (ASX) Stock Market Forum

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If the trend is decisively up, those small moves against the trend are simply countertrend moves within that timeframe. They may well qualify as 'trends' if you change to a different timeframe, but when they occur within that timeframe you're looking at while the overall market direction is up, they're simply pullbacks in that timeframe, not trends.

That's how I see it anyway, and I won't waste my time arguing with anyone who sees it differently.

Yes you can trade these retracements, but due to their short duration and small percentage moves, you'd want to be fleet-footed to get in and get out with a profit after paying brokerage and allowing for slippage etc.

All three of the examples you've given would have been losing trades if you'd gone short on the bars  you've marked with green arrows.


I'm not saying it can't be done, I'm saying it's difficult to do and why would you bother - if the overall trend is decisively upward, then it's far easier and more profitable to trade in that direction than against it.


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