There may be No Better Feeling…
There may be no better feeling than profiting from a market move which your common sense disagrees with. Given the substantial move higher in GBPUSD last week, conventional wisdom, and a bear trendline extending down from the Aug and Sept highs might have kept you from participating in the up-side.
A big edge seasoned traders have is the knowledge that as the volatility in a market picks up, a market performs better technically. A fast market is a professional trader’s best friend and anyone who tells you different isn’t in the club.
Below are a couple of intraday snapshots from GBPUSD on the 15 minute chart from the last two sessions.
In the top chart from today we see a counter-trend down channel end w/ a couple of dojis right on the Central Pivot, before turning up and resuming the overall trend.
In the bottom chart, from yesterday, we see a beautiful rising wedge with the Central Pivot providing resistance and a bull trend line providing support. The formation culminates w/ a buy signal above the Pivot, and price vaults to the next Pivot level. On this same chart there was a nice counter-trend signal earlier in the session when price cleared S1 after bottoming just below 162-50.
There is a reason why succesful day-trading pays so well. You have to make multiple decisions quickly, which increases the likelyhood of mistakes. There is also fractal geometry at play meaning what happens on a higher time frame is replicated on a lower time frame but with a degree of complication. That “degree of complication” is going to be just enough to throw off people who aren’t accustomed to making simultanious decisons under the stress and excitement of making or losing money.
Jay Norris
www.trading-u.com
To schedule a complimentary tutorial given by Jay during U.S. business hours send an e-mail to us at jnorris@brewerinvestmentgroup.com
DISCLAIMER: Futures, options and Forex (off-exchange foreign currency futures and options, or “FX”) trading involves substantial risk of loss and is not suitable for every investor. The valuation of futures, options and Forex may fluctuate, and, as a result, clients may lose more than their original investment.