Thursday, March 1, 2012

support and direction

these are the key words.

You want to buy at a support line -- in the DIRECTION of the flow.  If you can't determine the trend -- there is nothing to do.

Flow is determined by chart patterns and volume (to indicate power).

Today I detected 2 clear trades but only took one.   I did not allow the winner to run.  I took bad trades fighting flow and direction because I was BIASED and felt the market had moved too far.


All a trader can do is follow a plan.  A trend follower trades WITH flow by entering at support areas in the direction of the dominant trend.  Other market signals can provide clues.  (Are other markets trending in the same direction?)

 There is no reason to make any other trade other than the correct one.  You'll still get stopped out -- but this is following a clear plan of entry.

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