Continued Behavior and Change In Behavior: CL #F

We are going to look at viewing real-time markets through the lens of Continued Behavior and Change In Behavior. This will take us in the direction of using our tools rather than them using us. The direction of slowing down and learning to respond rather than unconsciously reacting while trading.  I'm not doing a trade setup here, I'm doing step one of any trade which is to clearly see what is actually going on with supply/demand. The difference is made by doing what they (buyers/sellers) are doing rather than imposing what you want to do.

 

 

There are three simple questions we can ask at given point on the chart:

1. Where are they buying it?

2. Where are they selling it?

3. Where does that change?

Use your tool of choice to identify buyers/sellers. I'm going to use a sloped and a horizontal Multi-Pivot-Line. An MPL is just price hitting a line 3 or more times. Keep it simple, this is not hard. Don't need projections or guessing or gut feeling. Just look at what buyers and sellers are currently actually doing (continued behavior) and notice when they stop doing it (change in behavior). 

From there I can

1. choose to join in on what they are doing

2. wat for that to change and join the new direction

3. use all this to read price flow like a book until I'm clear

This is a basic overview but if you reach for what Im trying to get across it will help you in clearly seeing and blending in with the rhythm of supply/demand as it is flowing and shifting in real-time. 

Shane

 

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