Try to see the obvious trend direction found on any chart. If you can not decide what that trend is, turn the chart upside down, or ask a child to look at a chart and tell you if the market is going up or down. Children are naturally creative and honest. They see things adults tend to overlook. If a child can see the obvious, so should the trader. There are a lot of ways a chart may express up and down movement, but a market is in the process of making either a top or bottom 100% of the time. Only when a trader can accurately define trends can he trade to his maximum potential by knowing where the market should go and when it should arrive at a specific price.
One of the most important question to ask during the trading day is this, "what is the last technical occurrence I expect to happen today?" At that price the trader must have reversed or exited his market positions. The valuable insight gained from asking this question prepares the trader's technical responses for any market condition and helps locate protective stops and possible reversal entries. What is the last thing you would technically expect from the market you are currently trading tomorrow?
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