dRisk Analytics
  • 1. What is dRisk Analytics?
  • 2(a). Introducing Compass
  • 2(b). Immediate Entry - Begginer Strategy
  • 2(c). TrendX Entry Strategy for Compass - Intermediate Strategy
  • 2(d). Crossbow Entry Strategy for Compass - Intermediate Strategy
  • 2(c). Delta Entry Strategy for Compass - Intermediate Strategy
  • 2(d). Fibonacci Entry Strategy for Compass - Advanced Strategy
  • ----------------------------------------
    • 3(a). Introducing TrendX
    • 3(b). TrendX - Mean Reversion Strategy
    • 3(c). How to Use TrendX - Take Profit Identifier
    • 3(d). How to Use TrendX - Knowing when NOT to enter a trade
  • ----------------------------------------
    • 4(a). Introducing Iron Dome
    • 4(b). Iron Dome - Entry Strategy
    • 4(c). Iron Dome - TrendX Entry Strategy
  • ----------------------------------------
    • 5(a). Introducing Delta
    • 5(b). Using Delta to Find Entries
    • 5(c). Using Delta in Confluence With Compass
    • 5(d). Using Delta - Take-Profit Placement
    • 5(e). Using Delta to Set Stop-Loss
    • 5(f). Our Favorite Entry
  • ---------------------------------------
    • 6(a). Introducing Crossbow
    • 6(b). Crossbow Entry Strategy for Compass - Intermediate Strategy
    • 6(c).
  • FAQ -----------------------------
    • Why choose dRisk Analytics?
    • What Does Data -Driven Results Mean?
    • What Pairs Can I Trade?
    • What Is TradingView?
    • How to set up a TradingView Account?
    • How to Setup dRisk on TradingView?
    • How To Open Your TradingView Chart?
    • How to Add an Indicator To Your Charts?
    • How to Change Chart Time Frame?
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3(d). How to Use TrendX - Knowing when NOT to enter a trade

Knowing when to not enter a trade using TrendX

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Last updated 1 year ago

How to Use TrendX

Knowing When to Avoid Entering a Trade

Understanding when to refrain from entering a trade is as crucial, if not more so, than knowing when to initiate one. While numerous indicators predominantly emphasize trade entries, there is a noticeable scarcity of well-rounded tools that effectively signal when to exercise caution and abstain from trading.

At dRisk, our team has consistently heeded TrendX alerts ever since we developed this indicator. With its predictive mathematical approach, TrendX excels in real-time identification of overbought and oversold conditions. This functionality empowers us to employ TrendX for various trading strategies, with one of the most critical applications being the ability to determine when NOT to enter a trade.

In the upcoming images, we will illustrate how TrendX can help steer clear of unfavorable trades that might otherwise result in losses.

Example 1

The image below presents an example where TrendX is absent from the charts. Both novice and experienced traders might be inclined to consider entering a long position due to the apparent bullish momentum and the closing of a bullish engulfing candle in the preceding three candles. In the following images, we will elucidate the reasons why choosing a long entry in this scenario may not be advisable.

Example 2

In this image, you'll notice that we're still on the same screen, but now we've integrated TrendX. It's evident that TrendX promptly notifies the user that the price is indeed overbought, signaling that initiating an upward position may not be a favorable decision.

Example 3

As evident in the image below, refraining from entering an upward position proved to be the wisest choice, as it would have resulted in a losing trade. Thanks to TrendX, which swiftly identified overbought conditions in real time and alerted users unmistakably, the knowledge to avoid this entry was gained. This action saved the user from incurring losses, showcasing the invaluable value that TrendX brings to the table.