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Old 10-29-2006, 03:32 AM
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Re: Trend Trading vs Counter Trend Trading

The previous chart shows the force index on the bottom. I use it for the first hour, then ignore it the rest of the time. By then I already have an idea what the market looks like after many bars have appeared since opening.

I usually get an idea of the last hour of the market the previous day but volume (or lack of) is very important in the morning to confirm the previous day's action. In some ways, the last hour is used and extended into the opening to get direction (higher high/higher low and lower high/lower low). You can see from the chart, the previous day action was already making lower high/lower low. So it continued down on opening, but volume sided with the bulls (shown on force index) and reversed. I waited for the next higher high, then on the higher low to make the entry.

Yep, my mentor taught me that before anything else. Everything else made sense later on after understanding this concept. Now you know my secret.


Last edited by torero; 10-29-2006 at 03:36 AM.
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