Bias/opinion got the best of me today as I didn't take into consideration the overall context of the market, what couldashouldawoulda been a few nice chances to short I managed to turn into a few long scalps right at the resistance level. After the long scalps, I stopped trading and examined the context for what I had missed.
Going forward, I am really going to narrow down and focus on executing trades at levels (long at support, short at resistance).
I feel like I can let winners run now (SLA, level to level), next step is to stop taking poor context trades, to enter only at levels.
(First trade 2:50 in)
The following user says Thank You to TheTradeSlinger for this post:
I have been trying to draw chart patterns to see the trend/momentum but the problem I am experiencing is the trend I drew is very subjective and not the direction of the price action. I don't know which two points should be connected nor finding a chart pattern like head and shoulder/cup handle. I know chart pattern we see live is not text book chart patterns so I wondering if you give me some advice on how to draw chart patterns to during your daily sessions to see the trend.
Thank a bunch!
The following user says Thank You to TraderRich for this post:
This is one of the best posts I've read in a long time.
You are starting out in your trading journey ALREADY looking into price action and trying to understand charts and how the markets move. I am jealous of your position, not kidding or flattering you, I wish I had found price action when I first started out trading.
"I have been trying to draw chart patterns to see the trend/momentum but the problem I am experiencing is the trend I drew is very subjective and not the direction of the price action. I don't know which two points should be connected nor finding a chart pattern like head and shoulder/cup handle"
Everyone starts here @TraderRich, everyone starts at "not being able to connect the dots".
Here's the thing, it's there, the answers and the trades and patterns are there, you just simply don't see them yet.
Is there a book or course or website that can help you see what you are looking for?
It all comes from experience and simply grinding it day in and day out until the answers start to reveal themselves to you, until all the squiggles and lines and bars start to form a personal, cohesive narrative to you.
The absolute best advice (if my 2 cents is worth anything!) I can give to you is to just keep at it, each day find your levels, mark them down, and see how price reacts at your levels/patterns. Disregard processes and thoughts that lead you to marking 'bad' levels and keep doing more of what leads you to drawing 'good' levels. It will come with time and experience.
Start a journal (personal or on futures.io) and keep logs of what you are doing each day, review review review and learn from what does and doesn't work.
Tomorrow (Tuesday) I want you to post your levels/patterns here or in your own journal and lets look at them together.