- watch the market move to a level you know a lot of people are looking at
- see that someone steps up and absorbs there
- see another attempt at the level
- see a bunch of buyers come in and push price up
You do not need to get in at the first sign that order flow says it may be holding. You might see a few things going on over time that convince you that this is a reversal. Then you consider where you are, where we may be going, how volatile that market is today - then you work an entry.
Fact is - a major reversal is a tricky thing to play - but no-one says you have to catch the low of the day. If you think the low may be in because of what occurred down there, you should still have plenty of room to take a chunk out of that market.
Also - you need to watch the order flow at major reversals but also on pullbacks. One is easier than the other
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You can. Whats more, you are strongly recommend to do that. This is the way to read the market.
But I’d better to say to myself: „This market is about to reverse” there are signs indicating that. At least in the very last moment.
What if we went higher and there is more buying than before but we are facing even more selling?
In this case I wont be that sure anymore that the market has reversed. You must fit this new information in and reevaluate the whole thing.
The situation you mentioned also could be the result of somebody’s operation who wants artificially create a little more (buying) liquidity because he has much more to sell. He has a plenty to sell but prices are falling rapidly it’s his best interest to slow things now by buying and keep price in range at the low. This way he may make other sellers to cover and/or increase confidence of buyers and lure them in. Its even more effective if he let the buyers to break out for a couple of tick. Now he has the desired liqudity he can sell everything he wanted /much more than he had to buy earlier to stop the move/ at a much better price..
So when can we surely say to ourself that this market has reversed indeed? When we are far enough from that place or time when it occured to not to make any money from it.
Of course, You must have a concept about what is going on NOW (not a concept about what is going to happen in the next 10 second), you can’t just fire randomly. This concept is based on what you wrote: watching price action and order flow. (reactions of other traders)
But the worst one can make stop „updating” his concept and transform it into an opinion an the most crucial time in the same moment when he enters the market.
I’ve read somewhere: „A trader can’t afford that luxury to have an opinion” If someone has an opinion he’ll stick to it, this will eventually narrow his sight.
Perhaps the biggest mistake is to think that the trade is over when you are in and placed your stop and target. The setup was clear, you made you move, only thing is left to sit down and wait how it will work out.
Trading starts just right then when you placed you bet. Your setup does not matter anymore, the past does not matter either, the only thing that matters and makes your trade a winner or a loser is how other traders will react to this new situation from now in the future.
And the future is coming for you tick by tick in the form of „NOW”
So if you want to get the most of your trade you must keep updating your concept by evaluating other’s reactions. If reactions fit in you picture: its good, if isn’t: drop your opinion drop your hopes and get out.
The bottom line is everything you stated is true and this is the only way I can imagine to trade markets (at least legally ), but it must be keep up the „anything can happen” mindset and react accordingly no matter how obvious the situation looks like. In other words: react other traders’ reaction no matter what!
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Hahahahahaha i like this stuff man))))
This is essential crazy free of all rules point of view and you god damhn right. Market do not cares so why do we need to care. Fire your shot and come what may))))
I must say the life is the same thing)))
It is time to learn.from you what a trader should be))
I think we should rename this thread to paradox trading. I feel so good. @adamov i am enjoy your energy that finaly brakes your ego mind. I enjoy your convinience. You pro trader now but without experience. But this is paradox)))) indeed
Trade is over than you place + 1 or 2 tick stop out or covered your position. But you right. Trade begins as you entered)))
This is it. This is reality blows away the shit dors of your mind. What a show))))
Make them pay man))
The confused mind only able to trade as it free at any time. Stay confused
Thank you man!
And thank you for sharing your valuable knowledge and wisdom. I feel I am getting closer and closer to the mental state that's essential to be successful in this field.
I still need to invest lots of hard work and time to develop and improve my skills and gain the missing experience, but this is not wasted time.
By the time I have finished my journey I'll get the same kind of positive feedback from my trading account.
Small tape moves not very fast and without stable pace.
It seems market about to concolidate 3150-3164
If you want to short or already short in such situation than pay attention to market on the sings of buyers steping in with force.
Remember this TRC and outcome it make. Good movements must be with fast tape
From 12:00 minute watch closer. 3154 or 3152 prices importanr. I think 3154 is more
Last edited by bloom; January 19th, 2015 at 01:23 AM.
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Well actually I was a little affraid of how I am gonna deal with a bunch of numbers running down my sreen.. I thought you must be like Dustin Hoffman from rain man or something like that to be able to follow it.
but after a little time your brain get used to it.
With a little practice I am gonna be like:
"all I see is: blonde, brunette, redhead..."
but seriously, it really hepls! your attention is not distracted by the past (chart) and you can focus to - what really matters - the present.
Last edited by adamov; January 19th, 2015 at 03:25 PM.
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