Reversals
All the volatility in currencies this week was not good for trend followers. But then again, trend followers aim to capture the “meat” of a trend. Trend followers don’t time tops or pick bottoms. If you ever see a trend follower bragging he “timed a top”, question him or her. There is a high degree of probability that individual is not trading as a true systematic trend follower.
Here is a good example of the wrong way to think:
“Exit longs on the exact day of the historic high!”
This is not the talk of a great trend follower.
