Market Conditions

The Surfer!: The best explanation of a plan is "the surfer" who goes surfing. Goes down to the sea. Checks the weather conditions. Is the surf up?. Is the breeze on-shore or off- shore?. If the conditions are right, jumps on the board and paddles out 300 meters.And waits. Waits for the right wave. There are many waves. The key is to pick the right wave. Don't want to pick one too soon or too late.The choice of wave comesfrom seasoned experience. Not a surfing plan. A surfer does not go out surfing with a surfing plan in mind. The conditions of the moment on the day will dictate the play.Depending on the conditions, what was a good wave yesterday...

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Finding the Zone

Finding the Zone: New Perspectives on the Mental Game of Trading Brett N. Steenbarger, Ph.D. www.brettsteenbarger.com This is a draft of an article that has appeared in the December, 2002 issue of SFO Magazine. The actual article can be accessed by registering at the SFO site: www.sfomag.com A number of recent books have emphasized trading as a performance activity, in which mental state is a key element in success or failure. So prevalent is this view that two separate books with the same title—Trading in the Zone—have appeared in the last two years. What is this “zone” and how can traders reach it with consistency? In this article, I will review ideas about the zone from a variety of sources, including new research in cognitive neuroscience, and spell out the implications for...

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Bounce

Bounces : a bounce scenario occures when price gets rejected of a pre definied key level area wether it be of a support area or resistance .. or a swing igh/low.. it just m,eans that price gets rejected of a particular area.. and is seen as unfair.. this will cause nice trading scenarios where u can take advantege from, on a bounce several points have to be met, inorder to take and play that bounce, but it depends if that bounce is anticipated from a supportish level or a resistance level.. ie a bounce to the up or downside,, if that bounce should occure to the downside, then we have to look at resistance levels and if they hold and price...

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Bounce Scenarios

1. BigSize but No Front Running : on this scenario it looks like there is some serious size on the layside an ready to buy.ie this pictuer looks strong but remember the prints are more important then just size on resiting orders... if u see such size right @ reistance , but we dont see anyone jumping infront of them (at least with significant size) then there is something foul, or simply put the market isnt ready to move up or thru this level.. no one is following the market up any further ie, no buying.. so be rather sure that price will bounce as the saing goes no demand leads to supply and be quick! as if that big...

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Breakout Scenarios

Here is the follow up on Breakouts Scenario 1 : Eating Thru Resitance when u notice that a good sized order on the backside gets hit frequently with good size and it gets eaetn up without or just marginal new money coming in @ backside .. then u consider to join the piranhas and put in a laybet @ 3,70 .. sometims it goes so fast that u will miss the train.. but hey.. it doesent mather the markets will be therfore evere and the next setup is just arround the corner ;) so we see 50 print @3,70 wich we say is an average price.. /is always relative to the current market) we see that the backside doesent get a refill.. we...

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Breakout

Breakouts Definition of a 'Breakout' A price movement through an identified level of support or resistance, which is usually followed by heavy volume and increased volatility. we look at a breakout either up or down from a range or key levels , like support restistance , value areas,rejections ,high activity levels... Here iam going to explain what to look out for and how to play a breakout scenario : First we are neutral as we just spoted our key levels and we watch the market actions around and between those levels,to judge the quality of demand and supply and where the past of least resistance most likely is.. this gives our first slightly...

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how to approach trading in general

how to approach trading in general well u need to emphasize that each market and each new event is different then the one before!no market is the same as the one before or the next to come... there is no black and white!however the underlying market mechanics and principles dont change , they are always the same..the market reflects those principles just in a different way each time ... based on liquidtity,volatility, average volume etc. it just comes in differnt shapes forms and size but the mechanics behind what u see are still the same.. and how to interpret the current market action.. is just a matter of experience.. and the basic logics i describe on this blog u need to know that setups and trading opportunitys wont play out picture perfect all the time.. as there is no exact situation...

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