Short term trading is all about the battle of the bears and the bulls. A good short term trader needs to learn to think like a general. Generals can’t afford to be on the front line of battle – their view from there would be too myopic. They must be able to view the battle from afar in order to assess the true course of the battle. Modern generals have satellites and drones to help them actually see what is happening on the battlefields. Strengths and weaknesses of battle lines are more easily seen by first taking the overview and then, as necessary, zoom in on a specific area of interest. Short term traders should do the same thing using their own version of drones and satellites (trading charts). First, keep up with the overall course of the battle in a timeframe designed for that purpose – I call it my primary intra-day chart. From my primary intra-day trading chart I can observe the prevailing trend, price location within the trading range and the fortifications that must be breached (SRVs) for price to advance – or perhaps retreat in the opposite direction. At the appropriate time I then move to my faster time frame intra-day chart(s) and look for a trading opportunity. The generals of the bears and the bulls will direct their troops in an effort to win the battle – I don’t particularly care which side wins – I just want to be on that side when it happens. So I try to think like a general – pick the side most likely to win the battle – and hop aboard when that victory appears imminent.

 

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