Chhirag Kedia@swing_ka_sultan
When a child is too young to understand, you don't bother explaining all the details about walking safely on the road. Instead, you simply say, "Don't go to the road." However, this approach doesn't apply to you because you already know how to do it.
In trading, everything boils down to rewards, risk, and probabilities. 10 MA < 20 MA can help quantify a situation with lower probabilities for a breakout to succeed. However, in my experience, there are still possibilities around the turning point in a downswing when the selling pressure dries, where the probability will be much higher for the trade to succeed.
Avoid rigid beliefs or sweeping conclusions in trading. Instead, treat such ideas as open for discussion and debate. This mindset helps you focus on the nuances of market behavior. Interestingly, breakout success relies more on underlying buying pressure than on indices’ movements. Markets often experience choppy phases where indices may trend upward, but weak underlying conditions prevent breakouts from succeeding, leading to mounting losses.