Saturday, April 20, 2013

Why recap previous days price action?

I have been asked why do I do recaps of previous days trading. The answer is very simple.

  1. It absolutely tells me if my take on trading is working for me or if it needs tweaking. In a nutshell, trade with the trend until counter trend rules apply.
  2. Hopefully its showing that you actually can get a good idea of the market before it happens (daily view is done a couple of hours before London open) and that (news spikes excluded) trades can be expected or taken with more confidence.
  3. Helps with understanding the subtleties that different pairs have, size of candles to avoid, times to trade etc etc.
Please see the GU recap below. I don't have know what GU is going to do. IF it is going to fall I know from my D charts that we have struggled to break above 1.5400 for 2 weeks. I have no clue if its turning where but the W pivot, W M3 or in this case R2 just below W M3 are good places.

So when you get this kind of lower high over 4hrs a sell would not be a complete surprise.

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