Dave W wrote:I am really gratified to see so many traders leaning on the daily chart before taking a trade, it is a critical criteria in finding the highest probability trade setupsDave, there were a couple of months this year where leaning on the daily wasn’t really an option (after initial interest rate increases and the beginning of the Ukraine invasion). Are you now more comfortable swinging a trade that goes against you vs then? I’ve personally Started to add a bit more swing positions mainly using spreads and selling premiums, as well as some stock that I’ve been able to hold for a day or more.
i always lean on the daily chart first regardless of the market. I would be inclined to take profits intraday in poor swing environments but still having the daily chart with you gives you are lot more flexibility even if you think you have to exit during the day. You can take more heat on a pullback than if you had no daily chart in your favor. Even in poor swing conditions most of my trades were intraday but the ones that i took overnight still had net gains overall. The gap downs hurt the overnight longs of course but helped the swing shorts and visa versa on the gap ups. By knowing that you need to lean more on intraday trades during those times and be more passive with your profit targets and focus more on exact entries then when you have an overall trending market. By following my criteria for the highest probability trade setups, one of the criteria is to enter on a break out of compression, the results will be improved from entering later in a trend. That said the overnight trades didnt work as well as during trends buit still produced net profits.
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Mini Lessons October 5, 2022