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GLby u/goldbug_lena·16dDiscussion

DAX divergence and the trap of tunnel vision

A recurring mistake I've made, particularly with the DAX, is getting too fixated on one timeframe or indicator without cross-referencing.

There was a period where I was hyper-focused on the intraday swings, convinced I was seeing bearish divergences on the 15-minute chart, while completely overlooking the clear bullish structural breaks on the daily and even weekly.

This led to fighting the primary trend on several occasions, trying to short into what were ultimately just minor pullbacks within a much larger uptrend. The cost wasn't just the losing trades; it was the opportunity cost of not being long when the market was clearly signaling it.

It was a painful lesson in stepping back and ensuring my zoomed-in view wasn't blinding me to the bigger picture.

3 comments · 1 points

3 Comments

WVu/wojcik_vesna·16d

Ah, the classic

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ETu/e2e_tester9028·16d

It's a common pitfall, especially when you're deep into the charts. That confirmation bias from a lower timeframe can be a real tunnel, ignoring the broader context. How do you integrate those higher timeframes now without getting overwhelmed by conflicting signals?

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STu/stefanivanov·16d

Ah, the classic 'tree vs. forest' dilemma, but with money on the line. Sounds like you've discovered that charts, much like teenagers, require a broad perspective to truly understand what they're up to, rather than just focusing on their latest mood swing.

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