Unlike many other markets not many track PA patterns in #smallcaps or specific behaviors. Mostly due to lack of intraday candles or classic chart patterns. But that doesn't mean there aren't any one just has to look outside of box from traditional chart patterns. #trading
For example, give #crypto guy a drawing board and chart and he'll draw you next Mona Lisa on chart. It's mostly due to abundance of data /candles which makes everyone see what they want to. In scarce environment of smallcaps you have to be more defined as behavior is constricted.
This means that due to time constraint also the MMs will be more forced to use patterns and techniques that also address this problem, not just chart drawers or pattern seekers themselves. It's why there is more liquidity traps in this market on avg due to limited exit opps.
The key method should always be to see for ITM (in the money) liquidity on left to anticipate what pattern might be required to shake out that liquidity. It's all about capital redistribution IF ticker has sustained demand. Hence lower chance of classic chart patterns.
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An important research component should be to do your due diligence on how strong your countries #SupplyChain are in case if fuel, food, materials increase by large degree. There are many places (EMs) that require careful planning for next year's and I don't say this lightly.
The seriousness of this situation is it's not isolated pressure, supply chains are under attack from every angle. This will likely lead to weaker countries being excluded out at some point due to prioritization. But issue is, every country is weak at something.
But energy insecurity is probably the main issue because without this the rest of supply chain cannot be secured. But what as well matters is to look into place (s?) that are the most wholistic in having enough self sufficiency as those countries will out-wait the rest.
Fbo/clearout distance is the price that they swipe above HOD. Often same ticker will have similar pattern of distance and can be key guide for short entry accuracy, if it already swiped once with fbo and reject. Important micro behavior to track. #smallcaps
Rough guide is in strong cycle that distance can be large and very open-ended. In weaker cycles and flows it will be more limited. Previous past 10 tickers will also be key guide to tell you current avg cent distance of fbo move to help define that better so track it closely.
Typically before each new fbo HOD swipe, MMs will consolidate price minimum 15 minutes under it. The weaker the flows the longer, and vice versa if stronger. That helps to give you readiness on when it might happen very roughly plus minus 10 min usually.
"Shh, no cheering, trade either works or it doesn't."
My usual default (70%), neutralizing subjectivity and removing internal voice works great on improving discipline and sticking to plan.
"What?! No way!"
This internal voice is dangerous, it gets you bagged on position. Angry surprising reaction due to counter move is often cascaded into bigger than planned loss. Take control quickly when this voice starts to speak.
If doing daily report cards make sure you honestly are seeking specific weaknesses or strengths to improve on and not just placing a dent on that end of day P/L. Make sure journaling approach has proper structure and is not just green/red type of thing. #trading
First thing in journaling to do is to separate setups so that you can track difference of your performance per each setup as likely you'll be performing much better on ones vs others. Journaling system without pattern or setup segregation is already in a bad shape from get go.
The next should be using cycle or market strength as filter variable for your journaling. Over while you might notice that your performance is much better or worse in specific cycle. Then you'll need to dig deep and expand journaling to find out why, by adding more variables.
Not knowing how market cycles work, makes every market very randomized for most traders/investors. Without knowledge on cycles or themes, the rest of trading approach will be built on weak foundations. Biggest personal mistake made in every market in early 3 years. #trading
There is very little attention going to cycles in broad #trading education, much less than it should be. Most technical analysis does not even acknowledge the existence of cycles, which makes no wonder why #traders are armed with so many random trading approaches.
Every #market has hot and cold theme. Study history to find out how much its shifting from one to other side, and try to be as accurate and detailed (as retailer can be). Your past mistakes and big losses might all of sudden make more sense, when wrong actions follow wrong cycle.