Trading Process and Strategy

Recognising Opening Drive Potential

There were three factors identified pre-session on 31st March, which alerted me to the potential for an opening drive in this session. (1) A contracting environment Firstly contracting on the higher timescale, as shown here on the daily chart. But also contracting on the smaller timescale, as shown here from an individual session perspective. If…

Trading Process and Strategy

Layered Levels of Support or Resistance

I love layered levels of support and resistance (multiple levels within close proximity). A primary reason is that they simplify our trade plan. There is no doubt about the direction that we’re looking for trade opportunity. Like last Monday… Keep an eye out for layered levels of support or resistance as you establish your S/R…

Trading Process and Strategy

Pre-Open News Trap

I’m always fascinated by the decision making of “other traders”. In particular those who trade in places where I suspect they’ve possibly got it very wrong. Like here… It’s a simple model for decision making, which I find particularly useful. As you watch price you will sometimes find yourself thinking… “WTF! Really! Who would buy…

Trading Business

Study the Transitions

Let’s talk about Market Structure and Price Action study, commencing with a question I received on Thursday – Do you still do daily study of market structure? And my response, sent out via social media: A followup comment from the original questioner… “I’ve tried this in the past but not been able to stick with…

Trading Process and Strategy

Failure Scenarios

I love this comment from David on last week’s article – Long is Wrong 2. The key part is highlighted. I’m actually really excited to see someone recognise the importance of watching for failure scenarios. Opportunity exists at the places where large numbers of traders get something wrong. The times and places where obvious expectations…