Profiting from Prophets
There are some really good analysts out there like @carlfutia who have clean, crisp charts.
I love his no-nonsense approach. No Buy programs/ sell programs whipsaw in his jargon. He gives you his expected range for the day.
If you are like me, sometimes you do a scouting report pre market to get a feel for what others are thinking. This can be more than a distraction, so be very careful with this so as not to bias your own conclusions.
I prefer to find my own set-ups, and then see how my observations stack up against theirs. I already have my extension targets in place, and then it is a matter of stalking the move as an action or reaction trade.
Let me be clear; when it comes to my money, my opinion comes first. I compare to see if there is something I may have missed. We can always experience the cup is half-full / half empty syndrome, so decisions need to be made.
Many times a trader won’t be able to state WHEN the trade will “be there”, but if his analysis is correct, then we can assume profit taking in the target area.
That profit taking, if it is in the correct zone, is what sequence trading is all about.
‘G” calls it taking the convenient trade; if the expected range is 1178 to 1155, then obviously if you wake up and the market is trading near 1178, you are thinking sell, and if it is near 1155, you are thinking buy.
“Why” for the move in the fundamental sense never enters my mind. I do want to know when volatility may increase because of a news spike, but I am unqualified to make heads or tails out of the info. I do want to know “why” for technical reasons, because that is cause and effect behavior that I can quantify based upon past experience.
“Let’s call the 68 as the RPG =+/- 3 points. 71 resistance, 65 as support. Before we worry about anything else, that battlefield is the first one. 71 is resistance for the 65.25 half gap, and that is the high odds call. The rainline is support until broken.”
I got it wrong. I had an appointment during lunch, and I said: “Obviously the market wont stay in this narrow range all day. ”
Wrong. Who knew?
Actually resident Ace Zeek did. He warned us earlier in the day that the makets might get quiet in the afternoon.
“Yes”. Right or wrong reason, it sure got quiet.
Nice call Zeek.
The power of teamwork.