One aspect of trading that used to befuddle the heck out of me was the behavior of price making “false” moves one way only to make a “true” move the opposite direction. This type of standard, run-of-mill price movement stymies most traders who think they need to figure out which way the market wants to go and stick with it.
Our CM Patterns approach is market-neutral and objective: we identify key support and resistance zones easily visible to our team members, and we trade either side of those marks without any personal bias or second thought.
I learned a long time ago that my own or any other person’s opinion about what price action should do is wrong more often than not. Way more often than not, actually. There aren’t many faster ways to broke & ruin in this profession than trying to trade “gut feel” or “instincts.
The only way I have ever seen anyone succeed in trading is to remove any bias or opinions and tune in to what the markets tell us they want to do. THAT is precisely what we rely on: market action itself showing us where the key S/R zones are and likewise telling us when it’s time to get long or short.
CM Team members know there is no more powerful, effective or deadly-profit sequences than price patterns that fail to move one way and reverse successfully the other. ES, NQ, CL and about every other market you can think of completed several fail + reverse => successful trade sequences today.
Markets are right now waking up to the type of unforeseen global news we predicted would emerge sooner than later. Years’ low volatility readings told us that deep piles of dry tinder were in place. All that was needed is some sort of spark, which would surely come along sooner than later. Cyprus banking crisis was that spark, and daily market action reverted back to normal today.
Trading can be easy when markets are moving… with the term “easy” being directly related to your level of understanding about reading price action itself.
For more daily updates from Austin, visit his blog at Coiled Markets.