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

Thursday, February 9, 2012

Aim and Shoot the Right Target


As the picture shows, shooting or aiming for the right target also applies in trading.



Like in today's trading range, the market zigzag and if you cannot find the right entry you cannot make a trade (target).


Aiming for the right entry or looking for the right location to make a trade is similar in hitting your target as what the man (Liam Neeson) is aiming.

In today's trading, I find two good locations that are probable to trade.


The first one is a short trade when the market formed a head and shoulder pattern.

And the second one, a long trade when it formed a cup with a handle pattern.

Same story from yesterday's trading.