- market direction
- what is the price action going to do.
- is this support/resistance, is it enough support/resistance to enter
- recognizing selling or buying weakness
WALK AWAY.
Not trading is preferred to trading when your focus is not "in it". Step back. Take a break. If things are still uncertain, call it a day.
Another reason for walking away is a slow, churning market. Small bars, wicks and tails, marked by extended periods of sideways action. The market has had a nice run, now what? A fight to reverse? Wait all day for THE play?
Sometimes, it is the end of a day or a week. Stepping away can be refreshing. Remember, there will always be another trade,
Take a break. Enjoy walking away.
TODAY:
Nice bullish Euro Market trend coming into the US open. But then it began to stall, and a rectangle was created.
We like these brackets, and establish a long/short breakout target. The lower target was hit for a +2 short. Buying was noted, and at the open I was not willing to risk profit on a strong reversal back into the rectangle. We never know how strong a PB will be, and holding a trade is a personal preference.
The follow up PB in the bearish trend tended to be disguised. A short at b14-15 could work, but that is hindsight. Personally, there were no other trades inside this run. Longer term, we still have a bullish flavor to the market, and there was no rush to jump on this sinking ship, nor getting trapped in a long at or near the LOD only to see another new low develop.
The weather is nice. It's Friday. Walk away.
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