I recently received an email from a student that I would like to answer in this week’s article.
“Brandon,
I recently completed the OTA online Basics Concept Course and enjoyed it very much. I am a day trader who only trades long because I have a cash account. I use the daily to determine trend, use the hourly to find supply and demand zones, and trade off the 5 and or 15 minute charts. What has been occurring more frequently than not is that price never seems to retrace all the way from supply back to demand where I wish to purchase using one of the three entry strategies. Half way down or so, price consolidates and remains in a basing pattern throughout the day. Should one play the base strategy if it is wide enough, wait for a breakout from the base, or continue to wait for it to retrace to my pre-determined demand level. Since this is a day trade I close all my positions at the end of the day. Should I continue to keep this potential trade on my watch list for the next day or longer, or discard it since it did… Continue Reading
