Expectations should change with a change in environment. In a slow, wide-swinging trend, your better off waiting for a deep pullback. Don't be too quick to enter. But in a fast trend, if you hesitate you may just miss the entry. Here's two fast-trend shallow pullback entry examples. There's no waiting for a 38.2% retracement…
I find the "grey areas" on a chart fascinating; the areas where our bias or premise start to show signs of breaking down and our decisions are clouded by the uncertainty that prevails at the hard right edge of our screen. This is where real learning happens! Where your knowledge, skills and attitude are pushed…
Active Trade Management for most people simply involves trailing of the stop loss order, first to breakeven and then behind significant price features as the market moves on its path towards the target. However there are other options available for those who wish to explore further. It can also involve scaling in and out of…
Several months ago I presented an article titled "How to Make a Strategy Your Own" which discussed the need to take your learning and development through a graduated process from post-session learning to simulation to live environment (minimum size) and then a gradual increase in risk. I presented an email and charts from a YTC…
I get asked from time to time which of my setups is my favourite, or which I would choose to trade if I had to limit myself to one setup only. I really hesitate to answer this question, because I'm a firm believer that the setup chosen at any particular time needs to be the…
Have you considered how you should classify the market environment? If not, it's well worth doing so. The nature of the current market environment will determine the game plan that you bring to your trading session. There are numerous ways to classify it. Trending vs Ranging! Accumulation, Mark-Up, Distribution, Mark-Down! Trending Volatile, Trending Non-Volatile, Ranging…
Here's an example of someone who's coming along quite nicely with their development as a trader. The following two images are from a YTC Price Action Trader reader who sent an email, asking the following: I'm not sure if this method of thinking can be used to go against my premise in the future? What…
EMAIL RECEIVED AT YTC (Subject: Is Forex a (f…ing) Casino?) Hi Lance, As I said in the subject of my e-mail, did you ever have the feeling that all this trading business is only a f… casino? Time and time again I lose all my money in these damned markets. I get only a few…
Grind: Low volatility Significant candle overlap Weak price extensions Pullbacks that just refuse to break lower And it just goes on and on, well beyond when you expect it to stop. Unless you’re comfortable scalping within such a low-volatility environment, your best game plan is often to just stand aside until signs of failure. Of…
