My method of trading is by no means the only method that would be successful. There are hundreds of ways for you to take successful trades. However you have to be able to calculate your odds. Thats the key, any type method you want to develop, you need to be able to have a clear set up that you can backtest and know what your odds are.. Also, you need to know the story of the trade, in my method, (1) we wait for a base to form and qualify that base by the amount of buying or buying reaction that occured the last time that price was hit.. then we know there are buyers that like that pricepoint.. so thats our base.. we have the first piece of information in our story.. (2) Then by looking at a 1-2 month view of the chart, we can see if there has been alot of interest in this chart, if there are buyers that come in on every dip, this gives us context and odds.. (3) then when a panic happens below the base, we know why there was a panic, because all those buyers where surprised, and started to stop loss their positions.. now we know the whole story and really have the odds in our favor... Unfortunatly Patience is one of the most important skills you need to develop as a trader.
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