My normal trading times are between 09:30am and 12:00 midday US Eastern Time. You won't see many trades after midday because in my timezone that is 3:00am. It's time to complete my post-trading routine before getting some well deserved rest.
But occasionally circumstances allow me to push a little beyond this midday (3:00am) time limit.
This occurs ONLY in those times when (a) I'm feeling wide awake and alert, (b) the market is directional with smooth price flow, and (c) something is screaming out to be traded.
So that raises a good question. What exactly is something that is screaming out to be traded? Unfortunately that's difficult to define. Essentially it's a feeling. Let me explain.
The default option is to stand aside. Most setups I just leave alone. I'd rather get on with my post-trading routine.
But from time to time the market sets up in such a way that I just KNOW… I have to be in this trade. This one is so good. It's an A+ trade. An edge that is so obvious that I'd be a fool to miss it.
A trade which I'd rather enter and take a loss than miss the opportunity entirely.
Think carefully about that last statement if you're new to trading!
From a technical perspective though, they will almost always involve a trap of some kind.
You need to sense the blood in the water. Someone, somewhere, has got themselves caught. There is pain. There is emotion. And for me… there is opportunity.
Today… we get to see one of these trades.
A trap on a retest of a level. A setup that was screaming out to be traded.
NOTE: Complex pullbacks plus the strength/weakness analysis used in this example are all covered in the YTC Price Action Trader.