Following the trend makes profit is a misconception
Merely trading in line with the trend does not guarantee profit.
In the first place, a trending strategy only profits if a trending market occurs; otherwise it won’t be profitable.
Therefore, you must trade in places where the trend actually works.
But the places where the trend works are places that “no one can predict.”
Rather, the more you try to predict, the lower your win rate tends to be.
Although people say the win rate doesn’t matter because the profit margin is large,
to be precise, “the win rate does matter.”
This is something you can understand by considering losses:profits.
No matter how long the trend lasts, if the profit rate is smaller than the number of losses,
the strategy will ultimately show a downward slope.
To avoid that,
we only trade in places where the trend will work.
This is what is meant by making money if you trade with the trend.
That place is
a place suitable for trend following.
In other words, a place that has a “box → breakout.”
This means it is outside the support/resistance area.
There are people who often point out support/resistance,
but that only works because the market itself goes up and down repeatedly.
Therefore, saying “support/resistance functions well” is incorrect, and
the real story is that “support/resistance does not function” in the true market.
Since the market itself is simply fluctuating up and down,
we should trade trend-following while considering that we are outside support/resistance.
From the start, the topics of MA and other trend-related concepts are full of falsehoods.
That is because it is merely drawing upon a later-appearing technicals.
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