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Re: Identifying Choppy Days
I literally spent hours and hundreds of days staring at price and tape until my eyes hurt. At first I didn't understand anything. But I figured I could forcefully brainwash myself to understand price action.
Eventually I did manage to understand it and somehow get a "feel" of price. During my early days, I met an intraday trader who seemed to know the short term market direction all the time. I was so impressed by the way he was able to look at price and determine market direction. He used no indicators. Just price and tape and seemed to know whether the market was going to lift of fall.
This motivated me since I thought his method of analysis was pure. I realized that by gaining skills to interpret price action and tape, this method will never get old or replaced. Hence, the key to longevity.
One of the key wisdom he taught me was: "The only surpise is for the trend to continue. If the trend in the morning is strong to the upside, expect a continuation of the trend in the afternoon." This simple wisdom has helped me save thousands of dollar as well as make thousands. Watching him trade was a true honor.
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James Lee
TradersLaboratory.com
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