When I educated myself about technical analysis based investing and trading in the late 80's and early 90's, (there was no organized education then) I searched for and eventually found reoccurring patterns.
Some of those patterns still work today, but the markets have changed a lot since then.
After finding price patterns to trade, I needed a method to manage the trade based new pattern development.
Once the new pattern developed, I could decide to add to a position, raise the stop-loss, stop-out and/or of course, take profits.
This and more comes together in a trading plan; however, there is the psychological hurtle that comes with the thought of "What if."
To stay in the moment of what was actually happening, I created the concept of Bar-by-Bar Analysis.
My idea was, each new candle has a meaning, so place that meaning in the context of the big picture analysis.
So, for example, if a Topping Tail (TT) candle formed, which tells us that sellers took control at that moment, was it meaningful in the big picture?
Then take the continuing pieces of information as they form, and continue the analysis Bar By Bar.
I will explain further in the video below
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Happy trading! If you have any questions or comments, please e-mail Greg Capra at Greg@mastertrader.com or Dan Gibby at Dan@mastertrader.com
All the best,
Greg Capra
Managing Director of Master Trader
Trading the Pristine Method — Origin and End
Dan Gibby
Chief Options Strategist
