Most indicators are a derivative of price
therefore they lag price
Trending
Compression
Trending
4 types of trades and there are hundreds of
ways you can take advantage of these
opportunities
1. Resistance will hold and you play a short
back into the consolidation
2. Resistance will fail and price will rally to
the upside.
Multiple Time Frames
What type of structure is playing out in that
time frame?
Is it more bullish indicating a higher
probability of a resistance fail?
Is price starting to put in upper shadows and lower lows indicating that the bears have
control?
What does the CURRENT chart imply occurred on the lower
charts?
www.netpicks.com/simple-range-trading-strategy/
After price breaks out, break out traders and those waiting to see bull interest pile into
the trade
Reading the forming structure can give you
a profit exit
Fail to watch the price action unfold and what
it will leave behind
….more importantlythe structures it will
leave behind
Long interest still taking place
There was no reason to hold on when it was obvious that the move
was in trouble
We can either have a trend termination type of trade or a resistance holding
trade setup
What should happen?
Failed expectations
We can only work with what we have at the
present moment
It gives you a reason to exit
Stop over the highs allowing for noise
Candlesticks give you an "inside view" of
who is doing what at each point in the chart
Lower time frames can indicate who runs the
show in the higher time frame – bulls/bears
Scroll through your charts and look for failed expectations
It's also not the only way to trade
It’s not the tool…it’s the usage of the tool
It will be the structure of price that will
determine if a trade is going to be placed