Lets Assume we have a automated trading system and we are going to exit a long trade at a certain point in this case assume its open of a new bar point "x" now our system is tracking a time frame which is lets say "5 minutes" we are going to exit at point "x" because we believe that the price will fall down now based on our 5 minute charting
Now at point "X" where we have sell signal we have two possibilities.
The price continues to fall as we predicted
or
The price reversed on goes up
In my own trading experience ,I see the latter happening more often.
Can we improve our exits? When we have a signal on a larger time frame to exit we take to a very small time frame and check if buyers are in control or the seller or perhaps delta is the answer?