I did not trade for some days. I wasnot interested and not motivated. This is important. Today I had time to read. I allways study markets, charts on different timefrime and on on every market. Concepts holding true for commidities may also apply to oilprices, stockprices, bonds, eurodollars and so on. Chartspatterns can be reckognised on monthly, weekly, daily, 30 min or tickcharts.

How can you master them? The only way is learn to look charts over and over again to study them carefully. This is best been done without bing emotional involved, eg being offline. Some kind of backtesting but then with chartpatterns. Of course you have to see in them when prices change, direct in front of your pc when markets are open.

The human mind is very powerfull to solve problems but also very weak in recognising patterns. There is a well known test reckognising human faces. Results were dramatic; even police men didnot perform well. In fact they even reckoned faces more badly than avarage. So how does a trader possibly reckognise chartpatterns? In an interview with the famous writer, and trader Bulkowski read his Encyclopedia of Chart Patterns in Traders of July 2005 he said he has enough of 50 chart patterns to trade succesfully. So here lies the answer: learn and reckognise and then remember a couple of patterns and trade only them.

daytrading
FDAX

Partial Gapclose

The FDAX opened lower today with a gap of more than 30 points. I poerformed one trade at the 4600 level. This is of course tricky. Sometimes the FDAX retraces from a gap but this time not immediately. Later on the day a partial gapclose so characteristic for this market.