"For me context is the key - from that comes the understanding of everything."
-- Kenneth Noland
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One of the best things you can do for your trading is learn how context works.What is context you say? Context is making sure the setting is conducive to you achieving your desired end.
Examples...
- A fisherman uses a geolocator to take him to a spot teeming with fish
- A person who likes taking walks in the warm outdoor moves to Miami... not Antarctica
- A couple that wants to enjoy a romantic, wine filled weekend shouldn't go to a dry county empty handed... Trust me.
Another place where context matters?
In trading.
Support and resistance... trendlines... TAOST Power Zones... These are all things that help provide the context within which price trades.
Here's another example of contextual price action... Price at all time highs... "Good news" comes out in the morning. Price pushes higher and forces short sellers to cover (close their positions.
Like so...
In trading.
Support and resistance... trendlines... TAOST Power Zones... These are all things that help provide the context within which price trades.
Here's another example of contextual price action... Price at all time highs... "Good news" comes out in the morning. Price pushes higher and forces short sellers to cover (close their positions.
Like so...
