A SIMPLE APPROACH TO GAINING CONSISTENT RETURNS THAT ANYONE CAN FOLLOW. NO HYPE, NO BS, TRANSPARENCY DAY IN DAY OUT. 1 GOAL, TO MOVE TRADERS FROM BREAK EVEN/LOSERS TO CONSISTENT WINNERS. ITS NOT FANCY, JUST EFFECTIVE.
Friday's market had more challenges than most trading days. NFP or non and farm payrolls presents increased risk to retail traders because of increased volatility and increased trading ranges. In addition to speed at which the market moves increases dramatically. All of this combines for a very challenging environment in which to execute a trade plan which on most other days has good odds of being profitable. Along with the increased technical challenges comes the increased odds that a trader can experience psychological related performance issues. Specifically slipping into a fight or flight mode that often generates over trading, stop lost violations and extreme frustrations. If with all that being said you still chose to trade the open provided quite a clue. The open drive lower often indicates a strong possibility of a trend day down and should set up a trader to look to fade in the counter rotations backed up.
You will notice that even in a trend day tied down scenario to support resistance zones provided great trade location for counter trend trades to the upside. Most zones provided a 2 point plus potential profit on first touch. This type of price action has been absent from the market since January and has made trading conditions more challenging. The last two weeks we have been experiencing more of a two way market and getting these counter rotations at the zones has become much more consistent.
Moving into next week retraces back to the upside should provide great short entry and I would expect the two sided trade to become more prominent. For more detailed look at the trading day please watch the video trade review below.