What’s the Right Trade? Answer
What’s the Right Trade? There were a lot of great answers to the chart problem posted late last week. This was a good discussion. I am really impressed with many of the traders’ insights into the markets and ability to read the chart! Nice job!
Here is my take on this chart and how to approach assessing a market like this.
What’s the Right Trade? Deep Practice
If you are interested in going deep into chart analysis and really learning how to understand a market by its own actions, check out our weekly Deep Practice program. Each week, a group of traders meet and go through charts like this, bar-by-bar. We discuss all the ins and outs of the chart, and look at the mental side of the trading game as it shows up in our work. It’s 90 minutes each week, always recorded, and first time subscribers get the last four recordings as a bonus — over four hours of training for free. Learn more at this link: Deep Practice Program
What’s the Right Trade Answer Video:
Hi,
Thanks for the wonderful chart reading exercise.
Regards,
Nitin
Fantastic stuff Gary, please do this once a week it’ll be a great help!
These weekly quizzes are a great idea.
Excellent answer, I like the way you clearly and concisely explain the market. It appears to be done in a methodical way, structure first, confirming the trend with volume, then going to the individual bars, waves etc. Looking back at my interpretation, I waffle and started with price bars. This is noted, lesson learned.
Will
Will,
In the Deep Practice program, I help traders develop a solid process when trading and this is what I mean. It’s more than just reading price bars and volume. We play a probabilistic game, and following a good process will always trump any other approach because it’s only by following a process that we put the probabilities on our side. Think about it this way: We can have a good process or a poor process and our results can be either winning trades or loosing trades. When we follow a good process, winning trades are expectable and losers are just bad luck (i.e., part of the probability profile of the trade). When we follow a poor process, winning trades are really just dumb luck and the losing trades are deserved. A poor process throws probabilities right out the window and success will never happen.