Kardec Trader explains when to hold or exit trades by watching price at key levels, trend line breaks, and MACD divergence. When 60-70% of retail traders are short, that's a sign to hold longer.
Moving Average Convergence Divergence (MACD).
Approximately 60–70% of retail traders short.
So if we go back to price coming into the level, breaking the trend line, and then the potential move back down to the moving average. If as price comes into the level, or prior to price coming into the level, I can see a clear set of lows, I will look for what's called a divergence. So what I will look at is what's called moving average convergence divergence. So if I see the two lines that they are moving in an upward direction as price is coming into that level, that will be a potential reason for me consider holding the trade either to a higher time frame. Moving average. Another level of thought resistance. Pretty predefined as well. The only other one that I'm going to mention is sentiment. So the principle with retail sentiment is very simple, is most retail traders are on the wrong side of the market most of the time. If you're looking at a market and you want that market to travel up, and at that point retail sentiment is selling short. What you tend to find if we exaggerate this move out is retail sentiment becomes more apparent once we go into a with the trend condition rather than in our trendline break condition. So a lot of the time in this scenario, you don't see retail sentiment heavily short. In fact, a lot of the time it's neutral. But on various positions might be 1 in 20, 1 in 30 at that point there, if I see 60 to 70% of retail short, that is an early sign for me to potentially hold that for longer.
