The decision to enter a new trade should be based on a new technical signal with a statistical probability of success. Lets say you are trading on a simple technical signal like a Doji star on a five minute Bond chart. A Doji star is a five minute bar where after a market move the ...
Once you master the psychology of trading you are ready to win. One of the reasons that trading is so tricky is because it pulls on your emotions.
3. Move the chart forward one bar at a time and look for your trading setup This is where the fun begins. Imagine whatever in front of your screen is the “live markets” and you’re trading it in real-time. This means yourSupport & Resistancemust be plotted, your relevant indicators...
Part of the Series Behavioral Finance Technical analysts use support and resistance levels to identify price points on a chart where the probabilities favor a pause, or reversal, of a prevailing trend. Support occurs where a downtrend is expected to pause, due to a concentration of demand. ...
Technical analysis looks at price charts to find patterns that indicate trends and reversals. Technicians believe that these patterns are the result of market psychology. A price chart, then, can be thought of as a graphical representation of emotions such as fear, greed, optimism and pessimism,...
Technical Trading Having discounted metrics like that, the only way to do it is to look at the bigger picture. Intechnical trading, that translates into trading more significant timeframes, like the daily chart and above. Do yourself a favour and open a daily chart. Next, zoom out to see ...
Trading strategycan be refined by analyzing chart patterns, setups, and trade plans. Trading psychology is refined by focusing onyou, the trader – the one who pulls all the levers and makes all of the trading decisions. Here are some trading psychology tips to get you started. ...
To the uninitiated, trading can seem like an easy way to make money. It’s tempting to think that all you have to do is buy something
It’s often important for a trader to be able to read a chart and have the right technology so that their trades get executed, but there is often a psychological component to trading that shouldn’t be overlooked. Setting trading rules, building a trading plan, doing research and getting ex...
Being aggressive doesn’t mean using large stop loss or for that matter using no stop loss. Also it doesn’t mean entering many trades at a time and closing the ones that are in profit and let the ones that are in negative stay open, I will term that type of trading as reckless trad...