As I stated in my last post, you will see the same patterns every day, up and down. I am capturing small winning trades every day with positive results. You need to be able to open your mind up to the possibilities of taking trades in the down direction as well as the upside. We do not care in what direction the market moves, but only that is does.
It sure is doing that these days with some very large moves. Sometimes I catch these and other times its just a smaller move. The best part about my method is that there are many places and times to be able to get in. There are a lot of great signals in the early morning open. The first 30 minutes of the day is some of the best trading although it’s really good for most of the day, but it can be a little slow during the New York lunch time, 11 am to 1 pm eastern standard time (9 am to 11 am west coast time).
Look again at a few early morning trades I have posted under this article. Also, I have some nice screen shots of a classic trading chart pattern setup that I look for. There are many great trading chart patterns to look for and some of these will include “Flags, Pennants, Wedges, Triangles, Channels, Head & Shoulders” and more. You can learn to trade all of these with no indicators, but with just trendlines, as in the examples I have below. Learning to trade without indicators is really a great skill and I highly recomend people interested in trading take the time to explore it. I have all of this broken down in the training section of my website. For the time being, I will be posting some of this training on my blog. This is not meant to be a complete explanation, but just a small sample to give you an idea of what you can learn.
When trading futures as I do, you don’t have to trade all day because of the leverage involved. The idea is finding patterns that happen over and over and being able to capture a small piece of that move. The key is finding patterns that consistently repeat themselves so you can take advantage of them by positioning yourself in the right spot where small mini panics take place. I have said that before but it is key in understanding how the market works.
A basic way to think of this is, “Support & Resistance”. Resistance is where there is a barrier where prices seem not able to advance. This is because there are no more buyers at that price and selling pressure ensues to take prices down brought on by profit taking. My method is such that we can easily spot where those turning points are. One of my custom indicators is set up so that a simple change in color more easily shows you that a shift in momentum is taking place. This is just a tool to help you see what is already present in price action. Just remember that “Price always rules”.
Tommorrow I will discuss Support and take it from there.
Vince
http://www.screencast.com/t/F3AdFKR1sE
http://www.screencast.com/t/HjUf8PKeEdI
Related posts:
- Trading Environment, a key component
- Importance of Keeping a Day Trading Journal
- Friday’s trading was a difficult start but great ending
- Training series / First in a nine part series
- Keeping your Concentration while Trading
Tags: flags, head & shoulders, patterns, triangeles, winning trades
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