Mr. Schizophrenic is out of the closet again. That is the name that I have used to refer to the stock market’s erratic price action this year. This type of price action isn’t usual for a market that has had the run that we have seen over the recent years.
We saw similar price action near the end of 2015 and into the middle of 2016. It was about a year of chop until it was over, so we might be looking at more of the same erratic price action for a while still. See below.
Master Trader Tip: when price action become erratic in the shorter time frames that you are viewing (whatever that is for you), move out to the next higher time frame.
If the “picture” does not become clear, keep moving to the next higher time frame until it does.
Long-Term Charts
It does not matter what you trade; all the technical concepts Master Traders use are applicable to all tradable instruments.
What we do as Master Traders is use multiple time frames to determine the “big picture” trend, support and resistance — and then move to lower time frames with that bias.
These country dramas that shake the markets are short-term shakes and all pass. So don’t get caught up in the day-to-day dramas.
The Greece drama passed, the Iceland bankruptcy passed, and the Italy turmoil will be long forgotten soon enough.
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These are great lessons, thank you!
Unbelievable, Information I didn’t know I didn’t know, lol. Thank you Greg.
I just completed the AGS course. Compliments, great work. Your comments explain the slides in an excellent way. I can say that what you teach in the course is the right method to trade gaps.
We have only finished 8 units [2 1/2 Modules] and after being hurt in the wallet over the past several years from other trading courses, we have to say the course has been worth it – many light bulb moments!
I’m really enjoying your trades. I have been trading virtual for the past month to see how things work out and I am impressed.
The new course is absolutely mind-blowing! It’s really great to have clarification on technical concepts and the importance of disciplined professional money management.
MasterTrader and You Building Your Financial Future Together
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
