It’s been almost a year since we last discussed the “Long is Wrong†scenario. And throughout this time it continues to be one of my favourite market openings.
Essentially a PB or BPB setup, occurring in a particular place on the charts where a WHOLE LOT of traders find themselves on the wrong side of the market.
And as we know at YTC, there is incredible opportunity available when the market proves a whole bunch of traders wrong.
Here’s how it plays out:
Let’s step through a recent example.
Yes, it’s a BPB setup, but it’s far more than that as well.
Yes, it’s a green day turning red, but it’s far more than that as well.
This is a setup occurring in a market that gave STRONG indications of being bullish. A market that tempts people to enter long, only to find they’re stuck in a trap.
Emotion is opportunity. Find the times and places on the charts where other traders are experiencing extremes of fear or greed. And attack!
Action Items:
1. Catch up on the previous articles here, for a few more examples.
- https://yourtradingcoach.org/trading-process-and-strategy/long-is-wrong/
- https://yourtradingcoach.org/trading-process-and-strategy/long-is-wrong-2/
- https://yourtradingcoach.org/trading-process-and-strategy/long-is-wrong-3/
2. Review the last three months in your own market and timeframes. Study any “Long is Wrong†market opening to see if the concept can also be applied to your own trading.
3. And if so… go for it. This is one of my favourite ways to see a market open. Hopefully you find the same.
Happy trading,
Lance Beggs