I recently shared one of my old articles via social media.
Click on the image, or this link here, if you wish to read the old article.
This is such an important part of my pre-session preparation.
It simply aims to get my session off to a good start – so very important for maintaining an effective mindset throughout the trading day.
This is not prediction. This is simply forward planning… developing “IF-THEN” scenarios based upon your assessment of the likely future price action.
If your “read” of price movement proves correct, you will have trade opportunity. If it proves incorrect, you stand aside and reassess.
This will ensure your actions in the market are pre-considered and your trades only occur when the market has confirmed your expectations.
And you will be less likely to be caught in a trap through impulsive reaction to unexpected price movement.
NOTE: What I am doing here with my IF-THEN analysis is NOT the same as the Game Planning / Hypos that you see other traders doing. Typically they're looking at much higher timeframes or Market/Volume Profile tools to determine a likely hypothesis for the WHOLE DAY.
I'm looking at the trading timeframe and where the market opens with respect to key levels, and assessing likely movement for the OPENING FEW PRICE SWINGS ONLY.
There is of course nothing to stop you using both. Whole session, higher-timeframe game planning plus opening sequence trading-timeframe IF-THEN scenarios.
It's just important here for me to point out the difference.
These are not meant to define the whole session. They just aim to get you off to a good start.
And from there, the picture keeps updating bar by bar in accordance with the YTC Six Principles of Future Trend Projection.
Anyway, let's look at my opening IF-THEN scenarios for the week to date, in the emini-NASDAQ (NQ) market:
Monday – 13th February 2017
Tuesday – 14th February 2017
Wednesday – 15th February 2017
Thursday – 16th February 2017
So as we head towards the open on Friday, why not consider creating your own IF-THEN statements for the opening couple of price swings.
They won't always be right.
But when they are, it means that your actions in the market are pre-considered and your trades only occur when the market "makes sense".
And when the market offers something different, you simply stand aside and reassess.
It's all about getting your session off to the best start possible, through minimising emotional reaction to surprising and unexpected price movement.
Give it a try. You may just like the idea.