The answer is very simple, to not take unnecessary losses and increase our win rate. Anticipating can work and get you better prices, but what if I told you it’s safer not to do it. I’ll show you why I learned anticipating the entry is dangerous. Below are charts showing a before and after if we got in on anticipation of a breakout and the results afterwards.
Below are two charts of the same stock side by side showing a before and after. On the left chart, we have a setup of a pattern that looked good. Had we entered in anticipation for a continuation higher you can see the results on the right. The chart on the right, it tried to go but sellers came in pushing it lower and finally broke down.
I hope this adds some clarity to why I mention not to enter prior to the trigger point.
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