In the absence of any unexpected news event, or some other reason to shock the market, a reversal will usually not just appear out of nowhere.
V-Turn reversals happen. But they're not the usual outcome.
More often than not, there will be multiple clues in the lead-up to the reversal.
The challenge for you, as a trader, is to learn to read the clues as they're presented and adjust your bias and trade expectations to suit.
Happy trading,
Lance Beggs
From time to time I get asked how I add to positions. That is, entering a new trade while the prior trade is still open. So I thought it might be a good idea to outline my response here. Then I can just link straight to the article in future. (Time management WINNER!) The…
Let’s start with some higher timeframe structure to provide a little context. The market kicks off at 09:30 and drives higher, confirming the uptrend is in play. YTC Price Action Trader principles 1 and 2 will guide our analysis and trade plan, until proven otherwise. The default option with a Sideways Trend is to seek…
The nature of the markets is uncertainty. Human beings do not like uncertainty. In fact we fear it at the very depths of our soul. Much of our society has evolved in an effort to reduce the uncertainty we face in day to day life, through controlling the environment, and implementing a structure of laws,…
You may recall the first trade in the sequence we discussed last week. (See last week’s article if you missed it!) This one here: This led to a comment I quite like, which I think deserves a better response than I gave at the time. Great question! There are some contextual reasons why I was…
I was thrilled to receive an email on Tuesday from a trader who has taken this recent YTC concept and achieved a new “first”. His first ever 100 point runner. Actually… it looks like closer to 110 but who’s counting! From the email: Hi Lance I don’t know if you remember me from earlier this…
We recently shared some post-trade reviews from Josh, who is doing exceptional work in creating a trade review journal for his longer timeframe forex trading (daily charts). See the trade reviews here if you missed them: https://www.yourtradingcoach.com/trading-business/Trade-Review-Examples/ But a trade review journal is not the only option you have. Today I'd like to share a…
Hi, Lance
Very appreciate your business and your web site.
You are really my best TEACHER (and the Market as well)))
Could you please explain why not to take C-trap and take SHORT right after closing C ? All requirements are met: 1) level (Res) 2) strong setup (trap) 3) bull’s weakness 4) strong bearish C-bar
And, if I don’t mistake, you took such a trades
Thank you VERY much for coaching and explanation
Regards
Thanks Ruslan for your kind words.
Why did I not short on the close at C? Please bear in mind that this was 3.5 years ago, so I don’t actually recall.
But looking at the chart I’d say it’s perhaps a combination of factors. I had only just been taken out of my LONG trade seconds earlier. It can be hard to flip a position from LONG to SHORT, unless there is a particularly good setup with reason for follow through in that direction (this wouldn’t qualify). Plus, where would I put the stop? There is no structure on the LTF or TTF chart for a sufficiently tight stop. It would need to be right above the high of C, offering insufficient R:R to the first potential target area.
Maybe I saw something else live? I don’t recall. But certainly those two factors would most likely explain the lack of entry, despite a rather bearish candle.
Lance, thank you very much for explanation.
Got your idea.
Will keep on studying your blog.
Regards