Ride price action – watch channel

As many traders follow “instructions” gotten from different sources with good reputation, such are bank newsletters many times without contemplating or trying to understand the sense and logic behind the “instructions” (it goes without doubting that those instructions are correct, but the question is how much can an average trader understand before blindly starting to operate based on them?), we will take a look from somebody who analyses things from a perspective of an average “small” trader.
A statistical fact that best trades are being executed against trends is telling us that it is best not to go with the crowd to a side of a trend, because a trend occurs when many traders do the same, when an action becomes “in”, or it becomes a trend. So it is not smart to enter that flow, because it calms the market and you can’t do much from that point, except to wait. As trend doesn’t happen by itself, best times to move is when the trend starts to form.
price action riding
Finding opposite positions is something successful traders tend to do. Those positions are recognized as all positions that are not actually in some name given positions; such are highs, lows, pivots, averages, price action moving points and so on.
Real things do tend to happen at those positions, but as they are most obvious, most traders tend to go there and thus slow down the market. You want to be isolated, it is better because you don’t have to share much of the markets value with others, but you have to hit the position right. Actual “breakouts” are not so much realistic anyway if you look at it from a bigger perspective, if you look at the “breakout” in a bigger and a wider picture.
Highs and lows are something that doesn’t have steady boundaries, so don’t consider them as something with borders. If this weren’t true, financial markets wouldn’t widen them constantly. We see from the magazines that trends are something wonderful that we can all benefit from, but it is obviously the case that everybody doesn’t benefit from. That is because the trends tend to break highs and lows, not highs only.
The notion that most of transactions happen during the European day, before the noon, as whoever wants to transfer money he wants it to be done the same day. If the order is placed in the afternoon, the transaction would be finished the next day. So this is the time when most transactions happen, a.m. in Europe. Fridays see that period even earlier, so the advice is to avoid positioning entries in this period.