We must always have RIGID RULES and Flexible Expectations as Mark Douglas rightly pointed out in Trading in the Zone.
Two Things makes trading success a higher probability event.
1. Having an Edge in the market [the technical edge based on your trading strategy]
2. Discipline. The mental and behavioural edge that can be refined by the use of mental techniques and structure.
A trader is either disciplined by nature, (very few people) or must learn this skill. Self Control, i.e. Discipline is not a genetic trait in most people. We are often born rebels hence we must TRAIN to be disciplined.
When you decide to train for self control and discipline you have to identify ways of measuring your performance. After you have identified and defined these measures you then set goals to achieve those scores if you like.
The T20 principle is one such measure. Incorporate this into your trading plan and create your trading and life goals. This is the only way to increase your odds of becoming a consistently successful trader.
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Support and Resistance
Although the only thing I'm interested to see at London Open is an initial breakout of a range and the subsequent pullback, if I could point you potential price levels, based on past activity of the hour of earlier session and the day before, it might increase my confidence levels and might as well increase the odds of a winning trade.
So I'll pay attention to simple Support and Resistance levels that turn from S to R and R to S. Please study specimen image below.
Main Idea: I want to spot the peak of 3 and bottom of 4. or in the non eWave terms I want to mark the peaks and troughs and see if price comes back to it in future and see how it reacts. So I'd like to see a break of a peak, then retest of that level. As in the chart below to the left. It breaks the high of hte peak (wave e) and then retests it. A cherry and seed setup here would be perfect entry. 1. Its an entry setup and 2. the coast is clear nothing to the left.
Note I: I'll pay more attention to this break and re-test than looking at S/R levels that are too far away to the left of current price
Note II: Later I will share one more technique that I learned from Steve. The TLB. Its already be shared and numerous examples have been shown but I'll do one more.
Keeping it simple though....
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