Monthly Archives: October 2014

What Doesn’t Happen – Is Important Information


Trading for me is all about the metagame.

My aim while looking at price action is NOT to find patterns in the traditional manner, but rather to look at that price information from the perspective of the other traders.

What are they thinking?

Where are they trading?

What happens if they're wrong?

It's orderflow that moves price. And if you can find the times and places on a chart where enough other traders are forced to act (usually where they know they're wrong) then you've found a source of orderflow that may just offer trade opportunity.

Let's look at a recent example (market and timeframe removed to avoid the usual question, "Does this work in my market and timeframe?". Focus on the concept. It's applicable to all markets and all timeframes!)    🙂 


Playing the metagame


Improving Focus – The Essential First Step


For the last year or so my trading computer has been on a desk just to the left of my work computer.

This has been fine except during quiet periods of price movement, when I've often found myself tempted by the work computer. All I have to do is turn to the right and it's within reach.

"I'll just check emails or facebook. It'll only take a second!"

Usually this is fine but occasionally I'll become so absorbed in whatever I'm looking at that I don't realise five or more minutes has passed without watching price.

The good news is that there was a simple fix, which has allowed me to maintain focus on price. I'll get to the solution just below. But let's talk in general terms first, because the solution works for many other causes of loss of focus.

How do you maintain optimal focus in a world full of distractions?

How do you maintain optimal focus in a world full of distractions?

The internet will provide many exercises on willpower and mindfulness, which should help with any focus issues you may have. These are great. But they're not the first step.

The first step is not to work on your focus. The solution is much simpler.


Open in the Vicinity of Prior Day’s Low Support


Last Friday we looked at a couple of examples of Market Structure journal entries, one of which involved a weak emini Dow open in the vicinity of the prior day’s low. Let’s quickly review this example, and the lesson it offered.

If you want to review the whole sequence you can see it here:

But otherwise, let’s just look at one image which shows the important point – A market open in the vicinity of the prior day’s low offers exceptional R:R if testing the support level with weakness.

Weak test of prior day's low support 

It’s my hope that you did get time to read last week’s article.

And that you saw the value in placing that entry into your Market Structure journal, or at least some notes with regards to the lesson.

And if you trade the emini Dow, it’s my hope that this concept was fresh in your mind when Monday opened.

Because it happened again!  🙂

Let’s look at Monday’s YM charts…

Weak test of prior day's low support


A Simple Step to Becoming a Better Trader


After every trading session, find something you can learn from. Perhaps a market structure feature. Perhaps an interesting sequence of price action. Perhaps a trade management insight. Whatever you find to be of most value!

Document it.

Store it in your journal.

Review your journal as often as possible.

Two examples…


1. A market open in the vicinity of the prior day's low offers exceptional R:R if testing the support level with weakness.

Market Structure and Price Action Journal