should i buy a rising market?
The low risk thing to do is to buy at the beginning of the up trend. But if i missed buying the low then yes i would still buy a rising market but i would place a tight stop loss below the current candle.
I think you should be patient and wait for another opportunity where you can buy at the early stages of the upward trend, it is not good practice to long the highs.
This is also why you should have specific trading hours where you must be on your laptop and not miss any opportunities.
I know some people do long the highs, but these are mostly hedge funds and high frequency trading algorithms who have hedged their risk in ways you may not even think of. But for a retail trader, longing the high is too risky.
The low risk thing to do is to buy at the beginning of the up trend. But if i missed buying the low then yes i would still buy a rising market but i would place a tight stop loss below the current candle.
If I want to buy a rising market I wait till i see a small hammer candlestick pattern, then i get in, i don't know if this corresponds with the common practice but it works for me.
If I want to buy a rising market I wait till i see a small hammer candlestick pattern, then i get in, i don't know if this corresponds with the common practice but it works for me.
If you must buy a rising or falling market, which is too risky, use the Fibonacci retracement tool and set your stop loss above the closest Fibonacci level to your entry. Look at the image i attached, there is a falling market and stop loss can be placed above the closest fib level.
The idea behind this is that the fib level is supposed to stop price from moving in the opposite direction but if price breaks any of the fib levels, then it could mean the trend has ended.
