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Chapter 1 · Chapter 1 - Introduction to the System, Risk Management, FAQs
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Trend Loss

1 min read · 142 words

When do I consider a trend lost?

It's a personal approach, you can adapt this as much as you want so it can fit your risk management.

Personally I consider a trend lost when

  • Close (on the Time Frame of preference) below 10-30 EMA (or whatever your preference is to show short term trend),
  • Retest from below and rejection.

A recent good example of I manage trend retests has been BTC/USDT D1.

Initial plan was to long a retest of $60,000-62,000 area, confluence of horizontal + D1 trend.

It ended up being lost, and the way I reacted

  • Instantly de risked after first daily close below this confluence
  • Waited for retest from below of the D1 trend + 59/60k confluence
  • De risked/exited more on rejections at this level (while taking scalps in between to reduce loss).