8 January: Understanding Price Action

Good discretionary traders know that an understanding of price action and how it interacts with areas of support & resistance is vital in achieving consistent results in the markets. A common mistake which many novices make is to execute an order at the market simply because they see price is trading at an area of support or resistance. However, without waiting for confirmation from the price action, and or a good setup that your pattern recognition skills are familiar with, this is a losing proposition. Good discretionary traders must excercise patience when waiting for the best opportunities to arise, and then courage to execute the trade flawlessly, without hesitation.

In today’s update, Trader Rick guides you through some topical price action and emphasizes the importance of this key trading concept and how it combines well with eFutureVision methodologies;

• Bund fib extensions and AB=CD patterns for support/resistance and profit targets.
• ES review again shows how combining fib extensions with AB=CD patterns can often project strong support/resistance levels.
• ES classic example of text book price action, and how it interacts with support/resistance levels. Use it to your advantage!
• ES Elliot Wave analysis review on the 60 minute chart. Potential trade idea here – Make sure you understand both scenarios.
• ES example of the fib extension methodology in action again – see and understand why yesterday was not a good day for this methodology.
• Euro Forex outlook for potential support using, you guessed it, fib extensions!

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