The SELL button
Mirror logic, and the main mistakes when working downward.
Work in the downward direction on the same logic as the upward one.
Why is “price has gone up too much” not an argument for selling?
SELL means: at expiry the price will be lower than the entry price. The logic of the idea mirrors a buy exactly; only the direction of the structure changes.
- The reason
- — A downward structure, the pullback stopped below the previous high
- The invalidation
- — A close above that high
- The expiry
- — matched to the timeframe you analysed
In practice beginners find working downward harder — and that is a psychological problem rather than a technical one. A fall in price is intuitively received as “something bad”, although for a short trade the direction is neutral.
The second common mistake is selling simply because “it has gone up too much”. That is not an argument: in a trend price can make new highs dozens of times in a row, and every entry against the move without structural confirmation costs money.
Symmetry is a good test of your system. If a sell idea is harder for you to state than a buy, the problem is not the market but a bias.
Key takeaways
- SELL is mirror logic to BUY, not a separate strategy.
- “It has gone up too much” is not an argument for selling.
- Difficulty stating a sell idea usually means a bias.
What people do
Seeing five green candles in a row and pressing SELL because “it cannot keep going” — with no lower high anywhere on the chart.
What works
Try a week of working only with the higher structure, whichever direction it points. That cures a lean towards buys quickly.
A practical example
A situation: GBP/USD, downward structure on M5, the pullback up stopped below the previous high, the pullback candles are small.
The idea: sell for 5 minutes, invalidated by a close above the previous high. One sentence, two halves.
Lesson 15 of 15 in “BINODEX START”