Sometimes the hardest part in trading is to know when to call what play.
A quarter back has many plays they can call. They have to know how to read the defense and have to know where they stand on the field and where they stand in relation to the clock.
As a trader there are “clues” given to you that let you know when and what play to take.
One example was given on Today’s 7-22-14 Diagnostic Trading Hour Show that I did in response to such a question in the Nadex Trading Pit of when to or not to do momentum scalps or when to do ITM or OTM spike strikers.
I discussed learning to pay attention to the slant of the volume and the slant of the bar timer to see if a market was gaining momentum or if it was dong the opposite.
Learning to do this can tell you when to do or not do a trade
abc is the rules for entry and exit
123 is the knowing when not to take a trade or to tighten stops earlier etc…
ie if there is momentum that is when to do things like momentum scalps, apex trades, mvp reversals, bmx reversals, OTM spike strikers, Boom P3’s, Boom P1’s. ETC’s etc…
if not that is when to do ITM trades, iron butterflies, apex profit poppers, ITM spike strikers, Classic Booms’s, EPC’s,