Anticipation or Monitoring....which is better?
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DGWizard
Anticipation or Monitoring....which is better?
What is more important, anticipation or monitoring. I understand that both are important, first we anticipate based on HTP and than monitor and trade on LTP. But my dilemma is this: Do we enter trade based upon anticipation or based upon monitoring? By the time monitoring reveals that our anticipation is correct, it may be too late.And if we enter based on anticipation alone, we may be wrong. So, what's the right middle path.
Re: Anticipation or Monitoring....which is better?
You know the old saying "It's a matter of judgement....Judgment comes from experience, and experience comes from bad judgment..."
Some trades are easy, and the wait for comfirmation and assurance is very slight to nil. A daily exhaust up into the monthly pldot in a downtrend is a no-brainer if the exhaust is definite and clear. You can grab this trade almost immediately if price has stopped.
Some trades are difficult...a long congestion where the balance of HTP support and resistance is more or less equal can be difficult and take a long time to resolve. We may have an opinion about the resolution of the bull/bear struggle but would want to wait until our opinion gathers factual evidence to support it as the market develops.
As your monitoring skills improve you will be able to apply more and more fine-grained distinctions in your perception of flow, and you will be able to move your decision point closer and closer to the point of extreme price, and as your skills in "pinging" improve you will be able to 'nibble' at market turns that are not immediately obvious to others, entering wih reduced risk and adding to your position as the picture becomes clearer to yourself and others.
One can always move down to the second lower time frame and monitor there but there are dangers associated with that, and so approach with caution and apply with care.
Some trades are easy, and the wait for comfirmation and assurance is very slight to nil. A daily exhaust up into the monthly pldot in a downtrend is a no-brainer if the exhaust is definite and clear. You can grab this trade almost immediately if price has stopped.
Some trades are difficult...a long congestion where the balance of HTP support and resistance is more or less equal can be difficult and take a long time to resolve. We may have an opinion about the resolution of the bull/bear struggle but would want to wait until our opinion gathers factual evidence to support it as the market develops.
As your monitoring skills improve you will be able to apply more and more fine-grained distinctions in your perception of flow, and you will be able to move your decision point closer and closer to the point of extreme price, and as your skills in "pinging" improve you will be able to 'nibble' at market turns that are not immediately obvious to others, entering wih reduced risk and adding to your position as the picture becomes clearer to yourself and others.
One can always move down to the second lower time frame and monitor there but there are dangers associated with that, and so approach with caution and apply with care.