Sometimes a seemingly perfect camouflage set-up will fail to produce a profit. We’ve all seen instances where a trade initiated at x caught a ride to the p midpoint but went no further. The tendency is to think we’ve done something wrong, but you should consider a second possibility – i.e., that the trend is simply too weak to reach the ‘D’ target of its minor camo pattern. In such situations, the best response is to jump on the next signal taking you in the opposite direction. This logic is demonstrated nicely in the recording. We were able to foresee a nasty reversal in August Gold later that day because of the failure of a minor, very tradable, uptrend to perform.
