Account Killer....
Do you see the chart below. I want you to look very carefully at it. This is called the account killer. It happens usually about once or twice a week depending on the market you are trading. Yesterday and today it was in oil.
Is there a way to recognize ahead of time that this sort of pattern will play out?
The answer is No. However there are certain times of day where you can execute trades at a certain level. If you are either stopped out or you are only able to take small profits then you know after three trades that the market is not going to reward you.
You can see the chart below and the range is only 40 ticks. Too small to be using any lagging indicators and too choppy to use leading indicators.
What it tells you is "nothing is happening". There are no major battles taking place. Price is simply at a point where neither buyers or sellers feel like pushing it anywhere. You can call it "Fair value" if you wish.
If you see this sort of pattern developing ahead of time and there are hints. Don't trade. Do NOT trade. It is wasting your capital. These patterns happen in all time frames and if you spot one simply stay out.
Is there a way to recognize ahead of time that this sort of pattern will play out?
The answer is No. However there are certain times of day where you can execute trades at a certain level. If you are either stopped out or you are only able to take small profits then you know after three trades that the market is not going to reward you.
You can see the chart below and the range is only 40 ticks. Too small to be using any lagging indicators and too choppy to use leading indicators.
What it tells you is "nothing is happening". There are no major battles taking place. Price is simply at a point where neither buyers or sellers feel like pushing it anywhere. You can call it "Fair value" if you wish.
If you see this sort of pattern developing ahead of time and there are hints. Don't trade. Do NOT trade. It is wasting your capital. These patterns happen in all time frames and if you spot one simply stay out.
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