Never let price take you somewhere your brain didn't get to five minutes earlier.
Keep your awareness ahead of price with a clear idea of expectations and a plan of action for whatever eventuates.
In conducting your analysis, think several candles ahead.
- Where is price going?
- How is it likely to act? Why?
- Will that provide trade opportunity? What will it look like if my analysis is correct?
- What will price look like if I'm wrong? What else could it do?
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.
All markets… all timeframes…
Stay ahead of price.
This will ensure your actions in the market are pre-considered and your trades only occur when the market has conformed to your expectations.
And you will be less likely to be caught in a trap through impulsive reaction to unexpected price movement.
Great insights Lance. Thanks.
You’re welcome Suresh. Best of luck with your trading.