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Trade skills in all markets

One thing I notice with trends is that on retracements price often bases but then pushes just below the lows to take out stops and panicky trend traders.

This is the natural order of price movement in that for a trend to move it needs a continual supply of new fuel.

If the trend is up and a trader is already long he will not bid up price.

If he is not positioned he will be tempted to trade into a position and in effect provide fuel to the move.

Price structure of a single bar in the context of a set of bars gives clues as to when traders are caught out of position.

This is what I look to trade off.

This does not mean I nail every move! For me it is still constant learning and practice.

Dax sep23.jpg (134.28 kb)

SPI sep 23.jpg (134.16 kb)

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Posted by: davin
Posted on: 9/23/2009 at 3:03 PM
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Categories: DAX | Futures | SPI | Trading | Training
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