This afternoon I tweeted that price was insufficient to confirm a move and that you need time as well. What does this mean? As traders we attempt to capture a new trend in the market we are trading. One of the most commonly used signals for a new trend is a powerful change in price. I have heard many traders refer to this as a change in "character" of the most recent trading pattern. This change in character is not sufficient to cause me to commit a large amount of risk.
Why not? Because a quick impulse move to new price levels are often the result of a temporary supply/demand imbalance in a market and the market will revert to its mean soon thereafter. Confirmation of a powerful impulse move Read more [...]
This afternoon I tweeted that price was insufficient to confirm a move and that you need time as well. What does this mean? As traders we attempt to capture a new trend in the market we are trading. One of the most commonly used signals for a new trend is a powerful change in price. I have heard many traders refer to this as a change in "character" of the most recent trading pattern. This change in character is not sufficient to cause me to commit a large amount of risk.
Why not? Because a quick impulse move to new price levels are often the result of a temporary supply/demand imbalance in a market and the market will revert to its mean soon thereafter. Confirmation of a powerful impulse move Read more [...]