My strength as a day trader lies in the morning session. I dont have trouble finding setups during the morning and I usually have levels that I identify premarket that I focus on at the open.
Although I do not lose in the afternoon sessions, my weakness lies clearly during this timezone. I have trouble identifying setups and usually miss the nice afernoon reversals.
An interesting comment was made in the chat room today by GCB.
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Well, I should have anticipated that big ER breakout. The market broke down, but ER really didn't. The overall breakdown fizzled and ER went to the top of its range. Should have banked on it. I love those kind of plays. |
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It didnt strike me at first but I was going over my trades after the close today and this comment triggered in my mind. I realized that I need to add further method to play these reversals myself. The comment refers to the ER2 breakout from todays chart.
I would love to hear other traders thoughts on identifying afternoon turning points and strategies. How do you guys decide whether a market will reverse or continue in the initial direction of the trend?
One method I use it by using fib retracements but then I would be getting a pretty late entry on the long side. (break of 61.8% retracement)
Thanks