Weekly Technical Analysis Update - 30th September 2023
Other Vital Considerations For Trading Outside Of Your Algorithm
•Volume – An algorithm can indicate a specific trend for an asset, but without volume, it’s not going anywhere fast. When volume returns, any open trades could very easily reverse.
•Size of Trend – If you see a small trend in either direction and you’re a trend trader, it’s not worth even considering the trade. We want highly trending assets. Even then, your algorithm should account for overbought and oversold conditions.
•Time Frame – I trade on the daily chart. Hence these trends are for the daily chart.
•News Events – News events bring market volatility and can trigger your stop loss in a trade that’s working well prior to the news. On some high-impact news, we see market participants “buying the rumour, and selling the news.” This means before the news when rumours are circulating, high volatility can be seen in one direction. Once the news is released, the move before the news can sharply reverse in the opposite direction. This can lead to stop losses being triggered.
•Find Your Own Comfort and Trading Style – I trade the daily chart and avoid news events because it’s what I was taught, and for my personality style what I prefer. I tend to dig myself a hole attempting to correct a mistake, especially in the heat of the moment and so news events lead me to make rash decisions. Hence, I avoid them altogether. Find your own style.
Weekly Technicals Chart Deck
Keep reading with a 7-day free trial
Subscribe to Geopolitics Explained to keep reading this post and get 7 days of free access to the full post archives.