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Re: Mentorship and Signals

PumbaPLS, Sat Oct 08, 2022 7:43 pm

Study Chart Pause Examples:
The Market naturally needs to take "breaks" or "pauses" to refill their tanks or to make decisions where to go from here.
If you pay attention the chart shared above, you will notice that the Market either continues its current Path or reverses.

Thanks to the VMA line changing to a VMA Candle we can to a good degree understand whether the Market wants to continue or reverse after that Pause.
Which is our breakout setup.

The important thing you need to remind yourself of, is that the Marking was and might still be in "slow mode" meaning there is thin volume in the Market and the trade idea might fail because of that.

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Here is the same Chart with another Example

Pay attention how the thin line is changing colours at times and how even after a breakout VMA Candle the Market still doesn't move from its Place.
When the thin line changes its colours back and forth its a strong sign that we are in a bigger consolidation.
Meaning the Market environment has changed from a short pause to a larger range as it currently isnt sure what to do ( you may call it also equilibrium).

You may have taken the intial breakout Trade to the short side and took either a full or small loss. Thats Trading. You can't win all.
You should take note though how the Market immediately goes into a Pause mode again (VMA line).
Thats another indication that you do not want to take another Trade till you get a clearer Picture of what the Market wants to do.
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