Yearly Archives: 2020

Confidence in the Trend

 

I've been discussing this idea for quite a while now. The idea that there is GREAT VALUE in studying your charts post-session to identify the price sequences which offered the best trading conditions. And then… the structural features which might help you identify similar trading conditions next time they occur.

Just last week in our newsletter I shared the following social media post

<image: Where does price move best?>

This is not just something we do for fun.

The exercise has clear and obvious benefits.

One of them being – when I see these patterns set up again they give me CONFIDENCE in the subsequent trend.

The image above gives one of these patterns.

Tuesday's trading gave us another…

Let's start with the 15 minute higher timeframe at the time of session open.

<image: Where does price move best?> 

<image: Where does price move best?>

<image: Where does price move best?>

<image: Where does price move best?>

<image: Where does price move best?>

<image: Where does price move best?>

<image: Where does price move best?>

<image: Where does price move best?>

<image: Where does price move best?> 

Not all trading conditions are equal. There will be times when the markets provide conditions that best suit our strategy. At these times we need to be focused. We need to know what we want to see to confirm these favourable conditions. And we need to be confident and ready to act decisively when they appear.

And there will be times when the market provides conditions that are less suited to our strategy. At these times we need to step back a little. Be happy to pass on anything that is not screaming out to be traded. If we miss opportunity, so be it. Let it go. And wait for something more favourable.

Post-session study lets you identify those sequences which best suit your style of trading. And to identify the structural features or patterns which might suggest a repeat of these conditions, should they set up again in the future.

For my own personal trading, I perform better in directional markets with nice smooth stable trends. The overnight volatility contraction is one pattern that has me primed and ready for potentially good trading conditions from the open. A pattern which provided me with confidence to TRUST the trend, should it develop from the open.

Are you aware of the conditions which you find most favourable? And the structural features or patterns which might help you identify these conditions again in the future?

If not, you have work to do. Study the charts for those areas where you see that "price moves best". And make sure that next time the market offers similar conditions, you're ready and focused, with the confidence necessary to attack that market opportunity.

Happy trading,

Lance Beggs

 


 

Metagame Entry

 

Metagame Entry – Recognising that entry is not just about price or patterns, but about the people behind the price and patterns.

And in particular the times when they're experiencing frustration, pain and disappointment.

Because the best opportunity comes when I can feel someone on the other side of the market getting it REALLY wrong.

This was one of my favourite trades of the week. Partly because it wasn't in my original plan. But when it set up, it screamed out to be traded.

<image: Metagame Entry>

<image: Metagame Entry>

But then this happened…

<image: Metagame Entry>

<image: Metagame Entry>

<image: Metagame Entry>

<image: Metagame Entry>

<image: Metagame Entry>

<image: Metagame Entry>

<image: Metagame Entry>

<image: Metagame Entry>

<image: Metagame Entry>

<image: Metagame Entry>

<image: Metagame Entry>

For those with the YTC Price Action Trader, the setup should be obvious. Refer to Volume 3, Chapter 4, Pages 28-31.

And you'll note that the entry is exactly at the point I define as the LWP. Refer to Volume 3, Chapter 4, Pages 72-77 for discussion on the LWP concept.

 

This trade was not part of my plan at the market open. I was keen to trade once price broke the overnight chop-zone, either higher or lower.

But until then… watch and wait.

Remain focused!

Because sometimes… price will set up right to sucker someone into a trap.

And when you see that trap, and feel their pain, you may well have found yourself some opportunity.

Happy trading,

Lance Beggs