In the midst of all the trading hype, technical indicators, systems and EAs, we forget about basic technical trading principles. This old example reminds us why market structure and the price action surround the market structure is the very roots of the majority of trading strategies!
When you're feeling like trading is not making sense, just step back and take a look at the clean movements of price.
-Mark the highs and lows
-See which direction the impulsive buying or selling is happening
-Understand what price is doing around these key levels
-If needed, add in indicators that increase the probability of your trading thesis, rather than serving as the basis of your thesis.
-Give the trade enough room to move. Often we get the direction correct, but the timing wrong.
I hope this quick post serves as a refresher for those of us that need it during this volatile time. Happy Trading!
This post is for educational purposes only. Trade at your own discretion!
When you're feeling like trading is not making sense, just step back and take a look at the clean movements of price.
-Mark the highs and lows
-See which direction the impulsive buying or selling is happening
-Understand what price is doing around these key levels
-If needed, add in indicators that increase the probability of your trading thesis, rather than serving as the basis of your thesis.
-Give the trade enough room to move. Often we get the direction correct, but the timing wrong.
I hope this quick post serves as a refresher for those of us that need it during this volatile time. Happy Trading!
This post is for educational purposes only. Trade at your own discretion!