How would your trading change if...?
How would your trading change, if you knew what the big money knew – when the trends were going to start, what direction they were most likely to move, and when those trends were most likely to stall out into consolidation?
Would you be a much better trader, if you knew exactly what the market was going to do, and be waiting there on the minute the market arrived at that time?
The entire question is based on the premise that the markets are predictive at all...that there's anything about them we can know in advance.
Take a look at this chart: (click to enlarge)
What makes this chart unusual, is the fact that all of the green and red "dots" represent turning point times that were carved in stone before the crude market ever opened. 6 days before it opened, in fact. They have nothing to do with price action...nothing to do with what was said or not said in the news. They are times that we were watching for activity at, that were all known in advance.
So now, we ask ourselves as traders with predictive tools....
What should I see, if this is really a time where money is coming into the market?
What should I see, if this is truly a profit taking behavior moment?
What are the obvious reversal prices? Where might this take place?
The trade on this screen was taken as a continuation move. But note the movement of the market around the times that we were expecting market reversals. If you only used these times as guides and said, "I will only trade long when I expect longs, and only trade short when I expect institutional short behaviors", how would you have done across the time period shown?
Some Flux clients will do that very thing, or they will wait for time and price to come together...waiting for a strong support or resistance level to line up with a known institutional behavioral reversal time. Look at this chart in the AUDUSD 5 minute and see how waiting to be under support for a short, or over support for a long, coupled with a known reversal behavior time produced moves instantly in the direction of the trade with little to no heat on the position.
These are just a few of the ways your mind starts to change when you are anticipating what SHOULD happen next, versus sitting there like 90% of traders imagining and hoping what could happen every few seconds...every other bar.
If you'd like to learn more about these techniques, and other methods of applying the results of the Flux data mining tools, simply enter your real name and email address and click subscribe in the box on the right side of the page.