Wednesday, March 08, 2006
Having loads of fun day trading again after such a long absence. Taking my own advise and spending the months of Nov. and Dec. studying, testing and refreshing my skills gives me the relaxed posture that's needed to make this work. I'd grown a little rusty just position trading throughout most of '05.
The one minute charts I set up were too fast on their own so I've gone back to overriding the higher time frames on top of the one minute graphs. In other words I've got the 5,10 and 15 minute charts tiled on top while the one minute run behind. Then the 60 minute is underneath it all so I can set up my support and resistance levels on the time frame closest to the daily.
Here's the nub of what I've reminded myself since Christmas and what's keeping me safe and profitable in this fast game. Never forget price action PRECEDES the indicators. Past patterns may be enticing and self fulfilling, but they cannot predict the next bar. Support and resistance that held in the past will blow right out one way or the other. Usually moments after the indicators tell you you've put on a safe trade. That's why smart selection of loss protection is the first step in placing a trade. Today had some absolute killer range and it felt good to come away with only one tiny loss while working the trading platform for all it was worth.
I'm also proud of posting this chart up for you. I don't have the technical computer skills to mark it up for you just yet but when I teach myself those details and get better. In the meantime, it's worth having a study on your own.