Anticipate – Don’t React

 

Here's a great question I received recently from another trader.

Anticipate - Don't React

Let's start by defining the terms, as it's obvious that any decision to enter must be a reaction to some "decision making input". But that is not what was meant.

The question is asking:

  • Do I anticipate every setup, meaning that it's pre-considered and pre-planned ahead of time before price gets to the area? For example… "The rally is slowing. If we get weakness on a break of the next swing high I'll be looking to enter SHORT."
  • Or do I sometimes just react emotionally to the current price bar without any pre-considered thought and planning? For example, "Wow… that's a huge red bar… I'm getting in SHORT!".

As I mentioned in response to the question… I always anticipate.

Let's look at a recent example. It's a sequence from last week which nicely illustrates the concept of "Anticipate – Don't React", showing how keeping my focus ahead of price ensures I don't chase or emotionally over-react to any sudden movement.

As a bonus it also demonstrates the idea that "sometimes a trade idea requires more than one entry attempt!"

Anticipate - Don't React

Anticipate - Don't React

We pick up the sequence with price rallying up towards area F.

We'll view this sequence via the 30 second chart rather than the 1 minute (trading timeframe) chart. It provides a little more feel for the internal movement of the TTF and will make the article a little shorter than if I shared a combination of TTF and LTF each time (I'm all about saving time & effort!).

Anticipate - Don't React

Anticipate - Don't React

Anticipate - Don't React

Anticipate - Don't React

Anticipate - Don't React

Anticipate - Don't React

Anticipate - Don't React

Anticipate - Don't React

Anticipate - Don't React

Anticipate - Don't React

Anticipate - Don't React

Anticipate - Don't React

Anticipate - Don't React

Anticipate - Don't React

You may not trade the same markets that I trade.

You may not trade the same timeframes that I trade.

It doesn't matter though. Trade on your terms, meaning that all action is pre-considered and pre-planned ahead of time before price gets to the area, rather than an emotional over-reaction to sudden price movement.

Anticipate – Don't React!

Happy trading,

Lance Beggs


Written by

YourTradingCoach - Admin

9 Comments to “Anticipate – Don’t React”

  1. jagadeesh says:

    Hi Lance,
    Thanks a ton for the effort you put in preparing those images to explain the concept. I am glad to tell you that it is crystal clear now. Thanks again. 🙂

  2. Marcus says:

    Another great article Mr Beggs, much appreciated

  3. Antonio says:

    Hi Marcus, thanks for explaing this concept, I was having these days a lot of trouble when I reached this zones. I came here because a youtube video about how to trade resistance breaks.
    I have one question about the targets you choosed in your trades, do you do this using fibonacci or how? Also, can you point me to an article about target selection? I think you make a great work explaining complex stuff, thanks!

  4. pat says:

    So very good. TYVM

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