Chapter 6. The Only Entries You Need
Figure 6.1. Everybody has an opinion. . .but they are not trading your money, are they?: 2006 "Fxstreet.com. The Forex Market." All Rights Reserved.
We spent some time earlier discussing that you should not define your trading by your entry strategy and that how you enter the market is dictated by the underlying market cycle. Accumulation, distribution, mark up, mark down cycles each have a strategy that is appropriate to handle the price movement that created the cycle. So the first question that you ask yourself as you begin looking at any time frame of any market is What's the market cycle?
If you don't answer this question, you are applying a completely random strategy to the market. This most oftentimes explains why sometimes your strategy works exceptionally well and other times it seems as if you are dancing to a completely different tune that is not in sync with the market. Remember that the market moves because at any given price there is a buyer and a seller willing to do a deal. Whether you are the buyer or whether you are the seller depends upon your trading plan, which is dictated by the underlying market cycle. That's it!
Since there are only four ways in which the market can move, there are essentially only four trading entries you need: one to handle each market personality. Let me add that the four I use are not the only ones that ...