On one hand, they can be incredibly volatile and unpredictable. On the other hand, they can provide us with opportunities to make money. Today is a perfect example. We started the day with a bias towards the bottom with QQQ showing weaknesses. We then rallied into positive territory as the markets regained their footing, only to be negative slightly.
Currently, we are in a strong uptrend on SPY and we are positive. At one point we were
-.41% and now we are up.34% as of the time of this writing.
The key numbers for the day worked perfectly and this is one area that traders must really
be disciplined with. Ideally,we want to only trade at those numbers that work for us and our
strategies. In my opinion, if we are consistently taking trades outside of those key numbers
we will find ourselves in a losing position more often than not. You can take trades between
those numbers but the idea is that there are a lot of deceiving price action moves between
them. So, I like to take a small position in case I am wrong. The probabilities are not as strong when we are in between the relevant prices on the daily chart. If you have an interest in improving your trading, I suggest that you look at significant prices and only trade those. Also, indicators can help, but memorizing price action patterns prove to be able to anticipate movements.