Why don’t you just…
… trade what you see?
Trade the chart, dammit.
Not the level.
Not the expectancy of a turnaround.
And, although I still do this because it gives me a kick, why do we even trade corrections?
Why can’t we just trade the sheer chart?
Every chart is either going up, down or nowhere.
So it’s pretty obvio, that the first step would be to…
… to what?
… to decide where the chart is going.
Again, it should be pretty obvio, that if a chart is going nowhere, then you are doing… what?
Are you trading such a chart?
Wait for such a chart to break out in one particular direction.
Wait for the LTT to turn in this direction.
Then trade this chart. Not before.
Yeah, LTT stands for long-term trend.
Yeah, we’ve befriended the LTT so much, that we have an abbreviation going for it…
Once you’ve sorted out the direction, look for an entry setup.
If the entry setup hasn’t formed yet, wait for it. If you can’t stop your twiddling fingers from doing something, feed in a trigger entry in case of a hypothetical setup formation within the next few hours / days, if your trading station allows this.
There’s no up or down anymore, to be honest. You are going where the chart is going, period.
You are also not asking the stooopidest question of them all…
… you guessed it… “Did the sensory index go up, or down?”
Just forget about the sensory index, ok?
I mean, we’re so done with sensory indices in this space.
DLF could tank 20 bucks on a day the Sensex goes up. Dow Jones could be down 50 points, but Pfizer could just spring into a stellar upwards move. Why should we have lost the short-side opportunity that DLF hypothetically gave, or the long-side opportunity that Pfizer could present, for example? We will do exactly that, i.e. lose the opportunity, if our focus is on the sensory index.
Focus on the underlying.
To be more precise, focus on the chart of the underlying.