Lightbulb moment
Posted by MC on May 18, 2008
Well folks…I had a light bulb moment on Friday. For the first 9 months I had a horrible “mentor” that had no clue, though I still respect that he helped me the best he could. From then it has been mainly allot of self learning (with help from some TB members of course 
) and I’m finally getting to see things properly now. Thursday and Friday I wasn’t at work and was able to devote 100% attention to the markets movement which proved to be what I needed.
Looking at the market as a slighted auction driven by the big money and chopping it into waves is crucial IMO. So the lightbulb went on when my mind saw volume and price action in the proper fashion, much clearer than I had before using volume and trends alone, kind of a mixup of what all I’ve seen in probably 10-12 hours of screen time daily.
Another thought that clicked is that trending moves are emotional, and congestion is a balancing/thinking slice in time. Of course the consolidation is needed for a breather and gives us supply and demand zones for entry and stop triggers. 
I also added the use of fibs to my arsenal as well, for retracement purposes of course. 
I had been trading in congestion zones for some time without really seeing the bigger picture or knowing it. Good traders prey on the emotions of others, in chop there isn’t enough emotion to exploit beside scalping. Let the congestion break and take the emotional slice of price action to the next level of congestion and so on. This defines trend trading at its core, and though I “knew” it, I didn’t quite see it properly.
Anyhow…enough rambling. Thanks Chan, Cire, Simon and others that have helped me, sometimes without even knowing you were doing so.
Good week for myself and TB guys, let’s keep up the great work.
