weekend charting 9 april, page-53

Morning all.

Great meeting many of you at Brissy 3...again thanks for all the positive feedback on my presentation. It's motivated me to at least try and put one chart up here every weekend.

This one is WDR, which I bought on the break of equilateral triangle res on Thursday.



The break was on decent volume break out as well which gave a little extra credibility to the move.

You'll see that yesterday she also broke the larger triangle formation, which probably contributed to the next wave of buying.

I usually don't use indicators so all I've included here are some Fib lines to give a few hints to short term targets (keep in mind I am primarily a very short term trader).

Interesting to note that they pretty much correlate with previous resistance levels.

I should add that I'm a very discretionary trader, so even though all of these signs are there, my entry is not solely chart based...I'll be looking at depth, sector interest (WDR is in hot iron ore sector), market sentiment at the time, etc. If all the stars align I'm often happy to enter early and anticipate the break. Of course being ready to admit I'm wrong when the trade stops doing what I anticipated it should, will see me exit pronto.

Trade journals were mentioned earlier...in my opinion, particularly for newer traders, a journal is essential. Log every trade you do...entries, exits, reasons for the trade, etc. Rate every trade, or make notes beside them as to what you did well, or where you failed. Then regularly review these notes. This can often give you a very honest window into where you are going right, or more importantly...wrong.

If there is a consistent pattern to your worst trades, at least you have identified an area that you can focus on to improve your trading.

I don't use a journal now, but did for several years, and with my trading frequency it took me hours to keep it up each night...but it was invaluable in reminding me what areas of my trading needed improving. If I find I'm having an ordinary patch trading now, I still revert to journaling all of my poor trades, just to try and identify where I've started to slack off.

Anyway enough rambling. Have a great weekend all!