Price sold off in the Euro Zone but failed to break below the SB. By the US open (just before) we had a gap to the SB which is considered bullish. The bull TL developed and we are off to a BO-5.
In a break out day, or perhaps any day, there is always an urge to short/long against the trend. Counter Trend trades are viable, albeit expect less from a CT in a strong trend. and expect some "heat" if your hold against the trend. I am not opposed to adding to a trade, it may not be in the best interest of the majority of traders learning the game when it is a CT trade.
Can it work? Yes. The with trend just seems more productive and less stress.
The TL broke for a better reward short around B42, and moved below averages and the BO-5. Why is this better? It was a TL break, a BO-5 break that was anticipated to return to the LB for a support test. Another gap, but at the LB. B50 returned the market to bullish and TL2 developed.
A nice day. More productive with the trends and reversals.
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