WY-07-31 / 09
A Complete Decision Process as Price Action Unfolds
The Complete Decision Process
Lesson / WY-07-31
A sustained decline first makes a wide downward probe on notable activity, then stops extending and produces the first substantial automatic rally. We now know the declining rhythm has been disrupted; the rally high and stopping low can provisionally mark boundaries. We do not know that selling is exhausted or that stopping is accumulation. The rally may merely be short covering, while subsequent sideways trading may absorb supply or form redistribution through weak rallies. The plan only specifies observation of both boundaries, without preselecting direction in the center.
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
