ALWAYS keep in mind that standing aside is ALWAYS an option and often the best one. If the technology is doing something weird, if I can’t tell whether we are ranging or trending or if the levels are all over the place – then step away.
State of mind
In the following situations I do not trade:
- After less than 7.5hrs sleep
- If I am anxious or upset about something specific and this shows up in early trades e.g. seeing trades that aren’t there or making sloppy entries.
- If I am having technical issues I do not trade until they are resolved and everything is working.
PA and PA Context
Huge bars at the open e.g. 30pts that take me by surprise. Let the market settle and then trade.
If the market is breaking levels, then reversing and generally not showing its hand, walk away with a clear view of what needs to happen to tell me what kind of market I have on my hands.
Situations that invalidate a 3Min Bolli set up
- If there is another important level just above or below the level I am trading.
Situations that invalidate 1min TL trades
- A ranging market: (1) 169 running through the middle if PA (2) Every new high or low gets sold (3) the market responds to every KL with a reversal of 10pts or more.
- If the entry goes straight into another significant level or 169 MA.
- If the entry is outside the 3min Bolli; this rule has some
flexibiliy: if the trade is going into white space and we are trending then this is OK; if we are in a ranging market and there are multiple levels above/below the entry, then the Bolli Bands are the final nail in the coffin for this style of trading in this session.