Thread: Intra Day Charts

Depends on your Psychology.

Markets have a tendency to trend and then enter trendless phases. Precisely how you define a trend will affect the kind of trading system you will develop and use. We recommend that you treat trading as a business. Pretend you are the owner of a chain of fine dining restaurants. Each one sports a salad bar, exquisite meals, and a fancy selection of ohhh so delicious desserts. Although the food is quite good and you`ve ensured that guests receive excellent service, there are some financial difficulties. Guests who frequent the restaurants don`t seem to be coming back. You wonder why... is it the quality of food, the location, new competition, or whatever. So you begin to change prices, advertising techniques, and even feature lower cost meals. But all this was done to no avail. The problem you have is a problem of association. Just because there are financial difficulties does not mean that you will also have financial difficulties in the future. While there are true reasons that customers are not pouring in, you do not know precisely why. This line of thinking causes countless traders to abandon well thought out systems and keep searching for the proverbial gold-mine system that never encounters a loss (never going to happen).
Your lesson here... follow a well thought out system despite times when things appear to go bad. If your underlying trading system concept is secure, you can weather the storm and prepare for the future possibilities in the ever-changing markets

I look mostly at intra day charts, but I often find times where the market rallies for a while and then halts and consolidates for a period before the next rally or decline starts. The problem is that these rallies do not often give me any opportunities, why is this ?