You know the TA, but now what? Have a Plan & keep is simple 

I’ve been mulling over a few thoughts about the mental side of trading and how to try to make this mechanical and while this comes naturally to some others do have to work at it especially at the early stages of learning.

Mentioned in a previous article was the Average True Range or ATR for short.  I also usually refer to this as the Average Days Range.

Previously we looked at the range break out and we considered the following as a consideration of when to trade which pattern, "the move into the range dictate the most likely direction of the break out move, 65% of the time it is a continuation pattern 35% of the time it is a reversal pattern."

Following on from the Fibonacci basics article we can now start to use a structured approach to identify and trade with Fib levels.

Trading Fib levels is pretty much the same as trading a pullback but you are using fib levels to determine where and when you you will get into a trade and place your stop loss level as well as identify your target levels.

Range Break Outs form the basis of my core trading. Generally speaking I call most consolidation patterns a range whether it is a triangle in one of its many guise's, a head and shoulder pattern, and so on. The point is to identify a period on the chart when price is contracting which then should lead to a period of expansion.

As with all strategy and methodologies there are some essentials you need to know before you can understand how to implement and follow my logic when trading.

Intraday Strategy Objective

The first thing you need to know is what my aim is for intraday trading set ups. What I'm trying to do is to capture the main thrust of the days movement.