WY-07-31 / 02
Initial Facts: First Describe What the Market Has Done
The Complete Decision Process
Lesson / WY-07-31
Do not rush to name a structure in the first record. Establish the prior trend and quality, price location relative to known support/resistance, magnitude and duration of recent comparable swings, volume coverage, sessions and anomalies, and whether range boundaries are stable enough. Facts should express comparisons, such as this decline crossed the prior low, but net progress was smaller and activity greater than the previous decline. This cannot yet establish that sellers have been absorbed.
Course content is for learning and research only. It is not investment advice.
Read the Chapter ↗Timestamps
9 lessons · Chapter contents
01Use Only Information Available Then and Preserve Trading Records↗02Initial Facts: First Describe What the Market Has Done↗03Retain Other Explanations That Fit Current Price Action↗04How Incremental Evidence Changes Judgment↗05When to Wait, Participate, Cancel, or Replan↗06Confirmation, Rejection, and Cancellation Are Different Actions↗07The Same New Fact Means Different Things When Holding or Flat↗08Evaluate Decision Quality Separately from Trade Outcomes↗09A Complete Decision Process as Price Action Unfolds↗Observe the market: start with context and place price within its structure.
Understand structure: compare supply and demand, and let evidence support or revise your hypothesis.
Form a view: define risk limits and know when to reassess.
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Analysis and Trading Decisions Within a Complete Structure
