WARNING: This text is a word-for-word transcription of Mac’s daily forex trading video. That means the writing will reflect the way he speaks, if anything seems out of place, please refer to the forex video on the page.
All right, everyone. We had just an absolutely explosive day today. If you’re following me on Twitter, what I was talking about there was the tendency of the market to blow off and get these huge moves like this at reversal areas.
So we’ve got, over an hour period, the market moving up from about the 5,500 area to the 5,700 area. So we have a 200 point move in six hours. Which is enormous.
If we go over here to the daily bars, you can see that this is all coming in right at this prior high over here. At the same time, we’ve got to watch for a possible uptrend. We need to be conscious of the fact that the market just might blow to the upside, and that this entire bottoming process will finally resolve itself. Remember, we’ve been talking about this thing for six months.
But at the same time, we’ve got to be very careful about the prior resistance over here. What I was explaining in today’s one‑on‑one support sessions was that oftentimes professional traders will lure people into the market at these prior highs, only to suddenly come into the market and sell, causing the market to move back down.
This is why on Twitter, and also last night, I was talking about watching and waiting for the little dipper. Also on today’s support session, I talked about and went over a little bit of analysis in this area over here, and talked about the daily trade video.
Now also at the same as we’re working on the consistency idea, and the idea of becoming a consistent trader, I’m also going to be working to improve or see what we can do with the daily trade videos to make it a better tool for you.
What I talked about today on the one‑on‑one support session was that these daily videos are for you, and I want you to be able to use these things to make more money. So I’m going to sit around and think about how to send out a survey to get some good feedback, whatever that feedback might be, about the daily trade videos.
So coming into tomorrow’s session, I think we’ve got to be cautious here. This is the point where the market is most tempting. I mean, look at this! This thing looks like it’s going to keep going up forever. That’s what the market wants you to think. Professional traders want you believing that the market is going to continue going up forever, because that’s when people …
I’ll explain it this way. When you’re young ‑ well, let me actually put it this way. When we’re in our early 20s, coming out of college or finishing up college, it seems like we can take over the world, and we can do whatever it is we put our minds to.
And while in a certain sense that may be true, once we get some experience we kind of realize, “Wow, things are a little bit harder than I had thought. I made some mistakes when I was younger, I made some assumptions when I was younger.” I kind of look back and say, “I only wish I would have….”
Well, the market operates the same way. We all approach the market like a teenager in heat. And we’ve got to knock that off, because the professional traders pray on that kind of thing. They hope that we get into that state. They hope that we start thinking that way, because then they know, once we flip into euphoria and we think the sky is the limit, we will hang on in spite of anything.
So cautious, cautious into tomorrow’s session. I’m actually looking for an area to go short, but there’s really no pattern. We just have the beginnings of a possible flagpole here. We’ve got a long way to go before we have any sort of pattern. Plus, we need to wait to see if we get some kind of little dipper pattern as we break through the upside here.
Also on the support session, I talked about how we’re going to need to watch and wait to see what the market does over here on the day.
Comments on this entry are closed.