Primary function of market is to facilitate trades between buyers and sellers. In this process, it creates noise, uncertainties and never gives you conviction and comfort to make trading decisions. To overcome this, one have to approach auction with structural thinking to read the context of what is the message market is giving us. To read context in a clear way, I prefer to practice with templates and if we make this as practice, then reading the context becomes habitual over time.
Alongwith live commentary at GreentickZ, am using such template based context reading which helps team to understand context behind auction.Sharing those templates in this post. These are part of commentary shared with members on 01st Oct'20 and this happens every day.
Premarket summary - Daily market report every day late evening is shared with detailed plan and trade hypos for next session. Same info in nutshell is shared in premarket summary too if there is no major change in price from overnight market.If there is major change in overnight price then modifications are done and shared in premarket summary with adjusted trade scenarios.
Premarket summary - Shared at 9.06am
Initial balance i,e IB is first 60mins post open.IB range and auction gives further clue about the auction.IB summary shared at 10.28am
Some times during intra, we may have the scenario where we get doubts about the bias/context we conceived.So, checking things this way can give more conviction or could help to revise the bias.This one shared at 11.54am
Final template is shared after first session roughly around Europe open to check things from auction.This one shared at 01.13pm
All above formats I use apart from regular commentary all day.. As I said at start of the post, purpose of using this template is just to take a break yourself from price advertisement noise and look back your premarket plan and then refer ongoing auction vs plan to draw clear context.This practice certainly helps to keep things under control.
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