The Perfect Order Trap. The reason you can't win lies in the copy of “critical delay.”
This is Pro Trade Coach Max.
This time, I will talk about the truth of the "Perfect Order" that many traders are drawn to at least once.
■【Lie③】The trap of winning with a perfect order
Many traders learn the basics of moving averages, and because simply that does not prevent being deceived and they seek one more refinement, they arrive at this method called the Perfect Order. Typically3or moreMA are used, and the short-, medium-, and long-termMA line up in a neat order from top to bottom, which is described as a "strong signal of an uptrend" etc.
However, when you actually invest your own funds and try it, you will experience a back-and-forth of wins and losses, and your total funds will never increase. The main reason is the“desperately delayed (lagging) signal”.
3or moreMA sequences being perfectly aligned means that the signals only appear after the market has already moved with a substantial range.The moment you confirm the Perfect Order and enter, it is often not at the initial movement of the trend but rather when large investors are already preparing to take profits (the end stage of the trend).
Once the market enters a range, you will be forced into “losing trades” with late signals, getting caught buying at high and selling at low. To win steadily in the market, you must not chase after the market after it has already stretched; you absolutely need a completely different technical analysis to capture the momentum of an entry at a timing with no delay.
■How to Break Free from the Trap of Lagging Indicators
If you want to escape the wrong common sense of waiting for signals that are far too delayed like Perfect Order, please check out the item currently on sale within GogoJown:『 truRCI Leading Textbook ~ “When the Lines Align, Enter” trap breaks, three professional predictive elements ~』(500 yen) Please pick it up. It reveals the essential essence to capture the momentum of entry at a timing without delay.