Trading rules

1. Learn to identify the main trend and master that first

2. Counter trend trading is much more risky and requires greater skill and faster trading

3. As a guide, using a 20 ma lets you see when pa is overbought/sold. When the excursion is allowing a safe trade, look for the set up

4. Look at how pa is setting up. If the approach is messy the risk is higher.

5. Consider how long the trend has been in place. Markets need pull back breathers even in strong trends

6. Look left! How is the evidence building up that a counter is justified.

7. Learn to distinguish quality from risky set ups. It not just the pa signal but the prior movement that tells you a trade is coming

8. Make sure your trend line is well defined/confirmed

9. Multiple time frame reading will let you know if the trend stands a chance of terminating. At that point a counter trend trade can become the new trend

10. While it is a skill well worth learning, you can make all you need sticking with the confirmed trend. Counter trend is not just the opposite of trend trading - it is much more advanced