Trend Retracement Concepts



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The concept of trend retracement can be applied in various ways. There are times for numerous reasons you are not in a trade, simply you prefer the Trend retracement as to the Trend breakout or you want to increase your position by pyramiding. There is no right or wrong and each has its own set of rules. The basis is the same, you are Trading with the trend and you are only taking low risk trades.

The reality is also the same is that you will have many trades that simply do not work. You will have small loses, small profits and rare big winners. This is trend following. For aggressive traders you even want to pyramid. Pyramiding is adding to positions. This is a personal issue and left to the discretion of the trader. Greater profits can be created as well as greater drawdowns. It is important to bear in mind there is a drawdown out there that can stop you from trading.

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