You don’t have to catch the absolute top. If you miss it, or can’t see it occurring till it’s over, be patient. There is often opportunity available on a retest.
Let’s start by looking at two images shared a few weeks back on YTC Facebook and Twitter, and then expanding upon this idea with a further example.
First, from the 3rd of August, 2015, we have two separate examples both shown via Trading Timeframe chart sequences:
And then again the very next day… one single example shown here via both Trading Timeframe and Lower Timeframe charts:
I see too many traders get frustrated by missing a trade entry. And more often than not this puts them into a negative mindset that creates further problems as the session goes on.
So it’s important to discuss this idea – you don’t have to catch every opportunity.
In fact… you won’t catch every opportunity… so it’s essential that you get used to this idea.
I probably miss more than I catch. And that’s absolutely fine. Brush it off. Keep focused. The next opportunity might be just around the corner.
That’s why I love these examples. A retest can come around quite quickly. If you miss an entry at a top… relax and maintain focus… there is quite often a retest.
Let’s check out one more example, this time from the 13th of August, 2015, in the Emini Dow.
Let’s start by taking a “big picture” look at the 30 minute chart… and we’ll follow that by zooming in to the actual Higher Timeframe chart:
The Trading Timeframe chart displays price shortly after commencing this rally towards resistance, and discusses my expectations for the likely future-path and areas of trade opportunity.
So I’m watching for either a breakout failure or a breakout pullback opportunity. But I also continue to monitor and assess bar-by-bar. If something changes in the nature of price movement, I’ll reassess my plan.
Let’s move forward a few minutes.
Missed trade perhaps?
Maybe? There’s no way of telling whether or not it will continue lower without me. If it does, I’ll let it go. I’ll be happy that I was at least stalking a trade in the right area.
But maybe not? Let’s just maintain focus and see what develops.
Moving forward again I find the market was kind enough to offer me a re-entry opportunity.
The lesson:
You don’t have to catch the absolute top. If you miss it, or can’t see it occurring till it’s over, be patient.
There is often opportunity available on a retest.
Happy Trading,
Lance Beggs