One of the to the lowest degree recognized trading strengths is mental flexibility: the might to proceed an opened upward heed to the show of the evolving marketplace in addition to revise views in addition to strategies accordingly.
Once a sentiment becomes ours, nosotros are prone to confirmatory biases, seeking data that supports our preconception. If, however, nosotros tin formulate multiple "what-if" scenarios, we're no longer attached to whatever 1 outcome.
A directional movement that cannot hitting the R1 or S1 earnings targets is non a trending movement on a twenty-four lx minutes menstruation fourth dimension frame. Failure to attain the starting fourth dimension of the targets is a feature of attain days.
At some betoken inwards time, a directional movement volition expect similar an uptrend or downtrend day. Evidence volition accumulate that the movement is non beingness sustained. The marketplace position volition provide to its prior range. Instead of trading for cost continuation, you'll desire to merchandise for reversals dorsum to a volume-weighted cost average.
The transition from directional merchandise to attain merchandise ofttimes begins when buying/selling pressure level cannot generate novel cost highs/lows in addition to incremental volume. Look at the ES merchandise approximately 9:55 AM CT. The nine AM marketplace position was directional; it looked similar the start of a tendency day. By ten AM, selling pressure level (very negative TICK) could non generate fresh cost lows; book tailed off.
Switching inwards an hour's fourth dimension from a tendency sentiment to a attain view, a continuation strategy to a hateful reversion strategy: That is the mental flexibility required of the active trader.
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