Defend Yourself Against Reversals

She always wears her pink rubber ducky floaters when she goes swimming at the beach or in the pool.

She employs stop loss points whenever she trades retracements.

Lifesavers are pink rubber ducky floaters. Stop loss points can help you save money.

As previously stated, reversals might occur at any time. Without warning, retracements can evolve into reversals.

This emphasizes the need of trailing stops in trending markets.

You can successfully protect yourself from abandoning a position too early during a retracement and exit a reversal in a hurry by using trailing stop loss points.

Conclusion

The “Smooth Retracement” does not have to take you out. You are not need to lose all of your pips.

You also don't have to wear pink arm floaties (but if pink is your favorite color, go ahead; we won't judge).

Simply grasp the difference between retracements and reversals.

This is a natural element of being a trader. Being able to do so efficiently reduces your losses and prevents winners from becoming losers.

You'll discover that with a lot of practice and experience, you'll be able to trade retracements and exit with a profit more often than not.

Could we perhaps advise some additional reading on this subject？

These forum threads may be of assistance to you:

• How can I tell if a trend is weakening？

• The most accurate indication of the strength of any current trend

• Price activity and trend channels