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3 Nuggets of Trading Psychology and US30 to 26791 for OANDA:US30USD by soaringtothestars

Today is less on US30 (and its further coming losses as you can see) and more on trading psychology .

Our perspective–on life and on trading–shapes our experience.  We can make trading a stressful roller coaster or we can make trading a rewarding development of our character virtues.  Here are three pieces of trading wisdom that have offered me the perspective to approach markets:

1)  If you want a fulfilling career, lead an empowering life – No one can live an impoverished life and expect success in their work.  The lives we lead are mirrors, and we internalize the images that we experience.  When we live good, generous, and caring lives, we experience ourselves as good, generous, and caring–and that naturally leads to our being good, generous, and caring toward ourselves. 

2)  We become who and what we love – When we truly love another, we give them our best selves.  That leads us to constantly exercise the qualities that define us at our best.  When we focus on ourselves and our profits become our greatest love, we train ourselves to live self-absorbed lives.  Love for another person pushes us to step outside of ourselves and internalize the best of the one we care about.  It is difficult to overreact to markets if we have people in our lives so much more important that the ups and downs of profitability.

3) Life will always disrespect our plans and charts. Now matter how awesome those lines are, however tantalizing our fibonaccis, the real world does its thing. So do yours and if you lose, move ahead and chalk that to experience. If you win, share the blessings.

Make sure you have a muse and inspiration to keep driving your passion. Whether it’s passion, business or life!.

Now back to the charts:

Multi Timeframe Analysis

Hint: FOMC and further rate hikes will tank the DOW further

Intact bearish Harmonic Pattern

Bearish Narrative:

1. Money Flow Index about to cross to the downside

2. More rate hikes for the year Growth could be limited.

3. Anti Shark bearish harmonic pattern on the Daily chart indicating intact bear control

4. Traders Dynamic Index signalling further losses

Expected movements: SP500 on the weekly chart sees potential bleedout. Expect Crypto to follow suit.

Recommendation: Continue your dollar cost averaging for assets pegged to the DOW and SP500 .

Remember: life often disrespects charts so trade with caution

——

Market order position upon the confluence of valid entry rules on the 4H or 1H chart.

-=ENTRY RULES=-

Trading philosophy: Don’t short at the lowest of the bearish momentum nor do we long at the peak of a bullish impulse. The safest entries are at the end of a retrace on the 38.2%, 50%, 61.8% or 78.6% fibonacci back in the direction of the master trend.

Note: I use Daily/4H or 4h/1H market structures with wave analysis to prep for potential entries. The RSI , MACD and EMA indictors are confirmation for entries at the 4H or 1H timeframe

For SHORT:

4H chart should confirm that the bullish retrace had turned bearish in the direction of master trend. The MACD should have dropped below zero signifying a bearish environment. Price would have dropped below the 10 and 20 EMA . For good measure, check that the 4h and D1 RSI is below the 50 signal line

For LONG:

4H chart should confirm that the bearish retrace had turned bullish in the direction of the master trend. The MACD should have gone above zero signifying a bullish environment. Price had gone above the 10 and 20 EMA . For good measure, check that the 4h and D1 RSI is above the 50 signal line

Divergences:

The 4H, 8H and 12H chart can reveal hidden divergences on the RSI , MACD , Money Flow Index, CMFI, On Balance Volume and Stochastics. When one or more divergences manifest- be ready. Trend reversal is coming. My best practice is to wait for at least an RSI divergence on the 4H, then drop to M15 to see price shifting with a 50EMA aligned with the 4H divergence.

About me

I am not a financial advisor nor a signal provider. These are the opinions of a 20-year private trader in the legal profession as well as a businessman diversified in the tech and hospitality industries. My favored tools of the trade include wave analysis, price action on the 4H to Weekly timeframes and institutional order flow ( COT data).

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