GOOD AFTERNOON FROM CALIFORNIA,
THIS HAS BEEN A SLOW WEEK TO SAY THE LEAST.
THIS SOARING EAGLE PATTERN IS 95% COMPLETE. I SAY 95% BECAUSE THE LAST CRITERIA TO MEET IS PRICE ACTION TO FIND SUPPORT AT THE 0.114 FIB LINE. THIS WOULD VALIDATE ENTRY.
WITH A 3:1 RISK REWARD PROFILE, THE PIP TARGET WOULD BE 142.
SOME PSYCHOLOGICAL EDUCATION:
I ALWAYS WORK BACKWARDS WHEN ASSESSING A POTENTIALLY PROFITABLE TRADE. YOU SEE, FOR THE MOST PART TRADERS LOOK AT THE RISK OF ENTERING A TRADE, THEN THEY ID THE FAVORABLE REWARD.
INSTEAD OF ASSESSING RISK...I SEARCH FOR POTENTIALLY PROFITABLE MARKET CONDITIONS...AFTER I IDENTIFY A PIP REWARD I AM COMFORTABLE WITH, I IDENTIFY THE RISK - IF THE TRADE IS FAVORABLE WITH A 3:1 PROFILE OR BETTER - I EXECUTE. I NOT - I WAIT OR LOOK FOR ANOTHER OPPORTUNITY.
THIS IS A LESSON ON TRADING PSYCHOLOGY - ESTABLISH YOUR SET OF RULES AND REPEAT IT - SOON YOUR MIND WILL BE CONDITIONED LIKE RIDING A BIKE ON HOW TO ASSESS TRADE SETUPS LIKE THE ONE ABOVE.
THIS HAS BEEN A SLOW WEEK TO SAY THE LEAST.
THIS SOARING EAGLE PATTERN IS 95% COMPLETE. I SAY 95% BECAUSE THE LAST CRITERIA TO MEET IS PRICE ACTION TO FIND SUPPORT AT THE 0.114 FIB LINE. THIS WOULD VALIDATE ENTRY.
WITH A 3:1 RISK REWARD PROFILE, THE PIP TARGET WOULD BE 142.
SOME PSYCHOLOGICAL EDUCATION:
I ALWAYS WORK BACKWARDS WHEN ASSESSING A POTENTIALLY PROFITABLE TRADE. YOU SEE, FOR THE MOST PART TRADERS LOOK AT THE RISK OF ENTERING A TRADE, THEN THEY ID THE FAVORABLE REWARD.
INSTEAD OF ASSESSING RISK...I SEARCH FOR POTENTIALLY PROFITABLE MARKET CONDITIONS...AFTER I IDENTIFY A PIP REWARD I AM COMFORTABLE WITH, I IDENTIFY THE RISK - IF THE TRADE IS FAVORABLE WITH A 3:1 PROFILE OR BETTER - I EXECUTE. I NOT - I WAIT OR LOOK FOR ANOTHER OPPORTUNITY.
THIS IS A LESSON ON TRADING PSYCHOLOGY - ESTABLISH YOUR SET OF RULES AND REPEAT IT - SOON YOUR MIND WILL BE CONDITIONED LIKE RIDING A BIKE ON HOW TO ASSESS TRADE SETUPS LIKE THE ONE ABOVE.
