My analysis of today's price action. As seen from the 100 000 volume chart, price spent most of the time in the lower half of the trading range yesterday (see chart). Pokes above midpoint were quickly rejected and price tested the bottom of the large trading range. This could imply weakness and one should be prepared for the market breaking the range and moving down.

This morning, market opened below yesterdays close, made some LL and LH and then broke out from the range. I would...

As I stated in my first post, my strategy is based on retracements and reversals. I wont trade break-outs because they are quite risky and dont enable tight stops.

First thing that I have to do, is to define the overall condition of the market, i.e. trending or balancing and devise appropriate strategy.

I will use this definition of overall trend: market is in an uptrend if it makes higher balancing areas or trading ranges and in a downtrend if it makes lower balancing...

I decided to start a blog and update it regularly to post my thoughts and track my progress with trading.

After few months of jumping from one system or approach to another I finally discovered the Auction Market Theory as explained and applied by Dbphoenix in The Wyckoff Forum. I believe this approach is the right thing for me since it gives me a context - it enables to grasp the structure of the market and anticipate levels which can be important for the future progress of price....