R+0.05: The Sweet Spot, When Bulls and Bears Are Doing The Same Thing

Today was great fun. I practised, I learnt and made a minuscule success.

The chart that really taught me the most or perhaps magnified what I am actually trying to do with my trading was the UJ. These lessons and observations were then mirrored and repeated throughout the session in the other pairs. The GU trade I took was slightly unlucky as every other trade I saw worked out, however I got out when it was getting choppy for a small profit.

Here are the major things from this session

1. I want to get Long when Bulls are buying at the same time as Bears are covering ...
2. I want to get Short when Bears are selling at the same time as Bulls are taking profit.
3. But you should only buy a lo (sell hi) if it is far enough away from the last hi (lo) to be profitable. Unless in a clear strong trend "start looking for price reversal setups back into the strong trend. When in a strong trend you do not need to wait for price to touch the BB(or S/R)"(thanks for this James)
4. More importantly than marking all S&R, is to mark the S&R where Bulls and Bears are both going to be doing the same (see UJ Chart correct and incorrect S&R example)
5. Doing the above is fun. I don't care what anyone says about trading. If you don't like doing something in any walk of life (ie following a system) you're unlikely to make it profitable! For the first time in a very long time (perhaps years) I found the work process engaging, entertaining and enjoyable.

UJ Obs: S/R level "Y" was not worth labelling because it was not worth trading. Any trade initiaed off it were only going to screwed by S level "X" and R level "Z".

EU Obs:

EJ Obs:

GU Trade: