'Trading is a process of observing the market's action until such a time you can find and form trading ideas and get involved.'**

Friday, December 24, 2010

Observe & Trade


As I was looking at the conclusion chart of the four core markets I am monitoring.

I find this one from TF e-mini a probable trade to short it.

Though I also found a probable short trade in YM and ES.

But this one make more sense in shorting because it broken the previous close multiple times.

It may take a lot of conviction but with close observation, it is a probability.

And also, looking at the channel trend and the days high started to wind down up to the previous close as I noted.

That's a good lesson for our technical trading 102.