Predict Market Action From The 1st Hour of Trading: Wrap-Up
This past week, I've spent writing about common market conditions and how they behave early on and what you can expect for the remainder of the day. I've received great feedback from readers on this series and for the most part, I think everyone understood what I was trying to accomplish with this series and that's mainly to provided you with a 'navigational' beacon that helps you to dissect the charts of the market, and have a fairly decent idea of what to expect, rather than sitting their hoping it will do what you want it to.
Obviously, the markets won't play out every time to the tune of what I expect to see per condition. Today for instance, we gapped down, and typically, the bears have a very hard time holding on to their gains - but here we are more than half-way through the trading session and we are trading at the lows.
So by no means does my 5-part series (counting this post) on predicting market movement act as some kind of fool-proof guide to always knowing the direction of the market from its early movements. Instead, it should be treated as a probabilities guide where I'm providing you with the likely outcomes.
Trading is by far one of the hardest professions and I would also say, one of the loneliest ones too, as very few people understand the angst and frustrations that we experience on a near daily basis. This is why my goal with SharePlanner, has always been to provide you with a first hand account of my own trading, as well as the knowledge and experience of other fine traders to help you in this journey.
I also encourage everyone to become an astute observer of market action, and start recording your thoughts from each day of trading in the form of a trading journal. Because those kinds of habits help to form the kind of opinions, and experiences that I've laid out for you this week as well as previously on other topics.
In any case, it is my true desire, that you were able to gain a lot from understanding the first hour of trading, and how to predict the action thereafter.
If you are new to this series or missed some of the previous ones, I encourage you to read them at the links below.
Predicting Markets Part 1
Predicting Markets Part 2
Predicting Markets Part 3
Predicting Markets Part 4