The S&P market has bounced recently. I called the bounce in my last analysis video. However, it isn’t about being right or wrong on our analysis. It is all about what we trade and how we trade moves. I have had good analysis and traded badly, and have had bad analysis and traded great. My point is that trading isn’t based on who is the best analyst.
I have used the multiple scenario analysis for the past 15 years. 15 years ago is when I started coaching other traders. That experience made me become more conservative in my methodology. It also made me a better trader.
I let the market decide my bias rather than creating my own. This is a big lesson that I learned while trading. It is much easier said than put into practice though.
We come into trading with various biases, and it is after we overcome these biases that we can attain some level of success.
This week I am looking at three overall scenarios. Two of them have the market going higher, with the latter seeing more weakness. I am looking for the market to go higher, but it will depend on what the market wants to do.
Currently, the pattern to the upside hasn’t completed. This means either the pattern will complete soon for price to go even higher, or the pattern is complete as a corrective structure sending price lower.
That is why I always let the market decide. As traders our primary job is to make quality trades. Notice I didn’t say make money, because that is a result of making quality trades. Therefore, quality analysis will have if/then statements embedded.
Have a great trading week, and feel free to post any feedback below in the comments.