|Sent on:||Friday, April 19, 2013 10:54 AM|
Thanks for coming! I had a great time, as always, hope you did too.
Last night we stated that price action has predictive abilities for the following days open. That predictive ability can be utilized as you see fit. Just a few extra ideas:
But the most important benefit is the trader does not trade blind on the open. Knowing likely price action gives the confidence to take setups in the highest volatility portion of the day. While the open often may be very profitable it is also the highest risk. Trade with your eyes open. Enter without fear.
We stated price closed 3 thrust down in a bear channel bull flag. Bull flags usually resolve to the upside. 3 thrusts usually give 2 countertrend thrusts to complete the pattern.
The price prediction called for one, possibly two thrusts up, likely breaking out of the channel and then creating a channel breakout pullback, then reassess. This is exactly what occurred.
A traders knowledge of price action to predict market movement 15 hours in advance should have created a high level of confidence in that trader to sell bar 3 for an 8 tick cash flow scalp on the completed 3T pattern and channel breakout pullback and/or buy bar 6 channel breakout pullback channel top test gap fill attempt buy setup for the possible low of the day, second 8 tick cash flow scalp plus.
Your cash flow targets for the day could be complete and deposited in the bank, and it is only bar 8.......
This is not voodoo, it is price action, and anyone can master it.
Remember what Neo said: "There are only two possible explanations: either no one ever told me, or no one knows." Someone has told you, it is up to you to walk through the door.