Candlestick Patterns – Candle Addition and Development
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Trade When You See Edge. Stand Aside When You Don’t!
A few weeks back we discussed a quick and simple method for identifying a "bigger picture" directional bias. See here if you missed it and want to review the idea – Part 1, Part 2. The second article generated quite a bit of good email conversation, with several traders now adding this to their current…
Build a Visual Library of MUST-TRADE Scenarios
We've spoken in NUMEROUS articles about the importance of using a journal to study key market structure and price action sequences, with the aim of developing your ability to perceive and understand the current strength or weakness of price movement and project that forward to develop a bias for the near future. Here are…
Trading with a Guard Rail for Increased Confidence in Bias
Let's look at a tool that can help you manage the conflict between what you FEEL should be happening and what you SEE is actually happening. Particularly for those of us who prefer clean charts with price only. Here is the NASDAQ 5 minute chart from Monday 4th March 2019. You can't get an indication…
Profiting From What the Market Doesn’t Do
Sometimes in conducting our analysis and formulating trade ideas, it’s important to notice what the market does not do. The chart below is a 1-minute snapshot of the 6B (GBP FX Currency Futures, equivalent of GBP/USD for forex traders) from last night, Thursday 25 Mar 10. The market was established in a downtrend with a…
Context Can Also Involve Time… Not Just Price
or… Why I held this trade drawdown longer than I usually would! On Monday I entered a PB short in expectation of a downtrend continuing lower. By far the best entry area would occur on a weak pullback to the shaded region (A). And the last Trading-Timeframe (TTF) green candle certainly makes it seem…
Structural Entries Allow For Imperfection
If a trade is scratched or stopped out and the premise remains valid, you should consider re-entry. Of course, that’s easier said than done. You’ve just taken a loss. It’s hard to get back in and risk further funds. But here’s the thing… Given the uncertainty of price movement, it’s unreasonable to expect that you’ll…