Wednesday, April 16, 2014

Short term trading bias is very important for daily technical analysis purpose


Short term perspective is very important aspect of building a career, In trading words it is known as "Versatility"!

How much importance do we consider to give our bias whether it is performance or whether it is "Directional". Aren't, we thinking of too far ahead and giving away short term profits away with that mindset. Let me tell you giving importance to short term profit strategies giving you much more to earn while momentum is there rather than looking for consolidation patterns like "Triangles" or any other "Chart Patterns".



Market makers hardly look at charts and they look at the chart only to see what crowd is thinking means what bunch of new traders do when there was no big market participation by them. So, It became equally Important to look out for strong "breakouts" and neutral days after strong activity happens on an Intra-day basis, while the overall price action is opposite of that day activity say, Reversal is happening on short Term prospective.

By the way, crowd doesn't necessarily mean lack of money on deposit. It only means that horizon of a trader is relatively small. In most cases, it’s short term traders who are responsible for initiative and liquidation breaks, because they are willing to buy and sell on support and resistance with fibonacci involvement

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