Pain Trade
- A low probability event. For e.g. a sudden strong bear reversal after a seemingly strong bull trend.
- Beginners get trapped in pain trade and get emotional, professional traders do not get emotional, they enter quickly in the direction of the new trend.
- Every pain trade is a breakout. (a surprise)
- Pain trade is the favorite pattern of professional traders.
- Example: 20221108 13:15 ET.
