There's no easy way to trade, but if you learn to read price charts, find reliable patterns, and get a feel for the market and time frame that suits your situation, you can make money. Along the way, he also explores intraday swing trades on several stocks and details option purchases based on daily charts-revealing how using price action alone can be the basis for this type of trading. Brooks focuses on five-minute candle charts to illustrate basic principles, but discusses daily and weekly charts as well. Written with the serious trader in mind, this reliable resource addresses the essential elements of this discipline, including the importance of understanding every bar on a price chart, why particular patterns are reliable setups for trades, and how to locate entry and exit points as markets are trading in real time. Opening reversals The components of an opening reversal pattern are. They bought the reversal up, betting that the rally would get back above the breakout point (the low of the first hour) and back into the trading range. Even when the market trended down at midday, they expected the breakout to the new low of the day to fail, because that’s what usually happens on trading range days. When experienced traders detect those feelings, they look at them as opportunitiesthey bet that every breakout will reverse and they look to buy low, sell high, and scalp. Beginners feel confused and disappointed by the repeated reversals, not realizing that these feelings are the hallmarks of trading ranges. This means that the bulls and bears were disappointed by the follow-through. There were many bars with prominent tails, lots of pullbacks, yesterday ended in a tight trading range (markets have inertia and tend to continue what they have been doing), and few areas of 2 or 3 consecutive big trend bars.
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