Tips for Trading

When price approaches a level, there are only two outcomes:
• it has an X% chance of breaking
• it has a (1-X)% chance of bouncing

Your job as a trader is to measure the variables that influence X.

Here are the top three things I look at ↓

VARIABLE 1: How price approached the level
• fast spike = good for reversals
• slow grind = good for breakouts

VARIABLE 2: Volume
• decreasing volume over time = good for reversals
• increasing volume over time = good for breakouts

VARIABLE 3: Price action on the left side of the chart
• choppy sideways range = good for reversals
• slow grindy staircase = good for breakouts

I only take trades when multiple variables line up in my favour.

Keep it simple.

source : X

#TipsNeeded