Confirmation bias when reading a live chart

[Amanhasnoname]

Once a trader has a view, the chart seems to support it. Candles that agree are noticed, and those that disagree are dismissed as noise. The bias is strongest during open trades, when the mind seeks reassurance.

The danger shows in the way exits are handled. Evidence that the trade has failed is rationalized away, and the stop is moved or ignored.

Counter it with pre-defined invalidation conditions. Before entering, write down what would prove the idea wrong, in observable terms: price below a level, spread above a threshold, a specific pattern. When the condition occurs, the decision is already made.

Another technique is asking, at any time, what the position would look like to someone with the opposite view. What would they point to?

Reviewing trades where the stop was moved or the exit delayed, and measuring the outcomes, builds an honest picture of the cost.

Rules made in calm conditions beat judgment made in the middle of a trade.

How are the invalidation conditions defined before entering, and are they ever overridden?