@JJFlack
it’s a fancy way of saying BUY LOW… SELL HIGH
LOW is Weakness / Depreciation
HIGH is Strength / Appreciation
END OF LESSON
does that make sense ?
Actually here is an extended lesson
Look at this EURAUD M30
now… a Newbie would say SELL SELL SELL
No Mate…
this is Weakness… the market is FALLING, the price is dropping / Depreciating if you will
so why would you now SELL
because the trend is your friend and all that … right ? hehe
well, look at this
1 Minute chart, same instrument
it’s now started to range
if you sell this , YOU MISSED THE BOAT MATE
it’s now going to look to go up again
hence the move is… BUY LOW / BUY INTO WEAKNESS even though your Newbie Gut tells you to sell
Look here’s a practical example, i just addressed this post a little while ago
he’s wondering WHY it’s about to hit his stop loss
well OBVIOUSLY he was selling into weakness
SELLING LOW is a silly idea
you see this is how it happens
HIS POINT OF VIEW IS…
it’s going down and now there is a pull back and it’ll go down again
My MORE EXPERIENCED POINT OF VIEW IS
it went down,
it’s now ranging and it will very likely come back up again at least to the top of that high candle in the range
so LOGICALLY…
you BUY somewhere at the bottom of the range, you put a stop loss a bit lower (in case you are wrong)
and you take profit at mid way in the range to around a quarter way to the top
so… BUYING INTO WEAKNESS
but he doesn’t see it that way
AND SELLING INTO STRENGTH IS THE OPPOSITE
is that clearer now
here is the entire post
in fairness to @dudupips he got wasted last night, so it must be all the alcohol
i think he meant to really hit the BUY button , but he accidentally hit the sell button hehe