Postings on this Blog are supposed to be about trading securities – and short term trading at that, so I suppose I should apologize for a brief comment about US Politics – but I can’t help but wonder Is just a coincidence that Barack’s (Obama) Speech can be shortened to “BS”? Sometimes, when I just can’t avoid listening to our President speak, I truly wonder if anyone besides myself notices the platitudes, innuendos and often outright fabrications of truth. Every time I hear him speak, I weep for my country. Our financial ship of state is being sailed into uncharted and dangerous waters and we have a captain whose single claim to fame (my opinion) is his ability to use a teleprompter. Take away his teleprompter and he sounds like a different person.

Okay, that is enough of that – I only got into it because Bloomberg TV – which I watch each day while trading – insists on putting Obama’s speeches on the air. Sometimes I don’t mute it and that is when my dander gets riled up. Oh, well, only three and half more years to go! God help us make it through it.

The market seems to not know what it wants to do today. The things I really watch closely have been trading in a pretty tight range. Tight ranges make it a bit harder to find really attractive trades because the music of the market is pretty flat – meaning the oscillations in price are smaller that I like. As a short term trader I thrive off the oscillations that provide me a minimum of 2 – and even better 3 – times reward over risk. Since I figure that it is pretty hard to capture more than 80% of an oscillation’s amplitude – smaller oscillations make it harder to find great trades.

A friend says, “it is nonsensical to say, ‘See the Music of the Market’ ”. I say that music is defined by its tone, rhythm and tempo – and so is the market. In music “tone” refers to the individual notes, rhythm to the combinations of those notes and tempo to the pace at which the notes are played.

In the market, I see the “notes” as price bars, the rhythm as the combinations of price bars and the tempo as the rate at which the price bars are created. Nonsensical or not, I truly “See the Music of the Market” – and it makes me a better trader.

I am temporarily offering a special introductory price on my new eBook, See the Music of the Market. You can get it for a time at a 50% discount. If you are interested in being a better short term trader, you need to get this deal while it lasts.

 

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See the Music of the Market

The unique trading method that is Trading Between the Lines