Pattern Video

Dec 27th, 2010

This is a quick video following up from the pattern repeat post. The first step is knowing the patterns but the second step is to understand how one pattern leads into the next pattern. It is really the only way to build confidence in each pattern.

It is not as simple as just going back on your charts for the last 3 months to find this one pattern on a 3 minute chart it is actually much more than that. It is knowing that the highs going into this pattern give odds on the pattern in the video meaning; if there are high odds that we are at a important high that gives us more confidence that we do go down after we hit the first X with the ??? marks on it inside the video.

One leg give odds on the next leg and without knowing the odds on the high you will most likely trade in the chop or the "Mid Pattern".

Some traders think that every minute in the market is like the next meaning that no matter where you are at in the pattern a trade should be taken and that is not the case. Yes, you can hit the buy/sell button anytime during the day but if you want to trade with odds or a reason behind the buy and sells then not everywhere should be traded.

Even if you are just a scalper just think how valuable knowing the bigger pattern is?? Maybe your scalper chart says to go long right at the 10 minute resistance (it most always will) the value is you knowing that the 10 minute is more relevant that the scalper and to skip that long trade.

The trades that are skipped can be the difference of you having a profitable day or a losing day.

Happy Trading,

www.eMiniSchool.com