Trend or Revert

It's of critical importance for traders to identify the type of trade they intend execute.
Although it's easy to become mired in the vast universe of trading systems and styles, there is a underlying simplicity to the markets, which when taken into consideration simplifies the decision making process.

There are only 2 types of trades. Trades which expect to take advantage of a trend continuation. Or trades which hope to capture profits visa vi a reversion. By understanding this traders can make more cogent choices when selecting their criterion for the entrance and exit of trades.

For example, although it is possible to use MACD when hoping to capture a price reversion from a high, there are tools which are much better suited to this particular type of trade. Tools such as Bollinger and Starc bands.

Likewise using ADX to identify reversion trades is less than optimal.

Consider what you are hoping to achieve in a given trade and ask yourself which of the two types of trades you are pursuing. Once this is accomplished you will be in a much stronger position in regards to entry and exit positions.