High probability trading : Complete strategy guide for beginner part 2

A big mistake most traders make is, going short just because the price is overbought, or oversold.

Because in a strong trending market, the market can be overbought/oversold for a sustained period of time (and if you’re trading without stops, you risk losing your entire account).

or oversold !

overbought-for-long-period-1024x495.jpg

Now you’re wondering:

How do I use Stochastic to identify areas of value?

Here’s the secret…

Are you ready?

In an uptrend, you only look for longs, when the price is oversold.

In a downtrend, you only look for shorts, when the price is overbought.

Here’re some examples:

or short

If you follow this simple rule, you can “predict” when a pullback will usually end.

So, you’ve learned how to identify areas of value on your chart.

Now…

…you’ll learn how to better time your entries.

part 3 : How to enter your trades