Ming Jong Tey
Independent Analyst
“What do you mean by let the market play out? I though you are bullish!” This is a common question I get from time to time from readers.
A lot of time, I tend to respond with “stick to your trading plan and let the market play out” despite I have formed a directional bias with my analysis.
For example, If I am bullish on Stock A based on the analysis of the characters of the price action and the volume, I will still consider the opposite case (or the failure case).
Some of the questions i would ask myself
1. At what point my analysis will be invalidated and turn bearish?
2. What are the characters of the price action and volume would I anticipate for a failure case?
My trading plan is to prepare for both scenarios despite it is very clear that there is only 1 scenario plays out at the moment. My trading plan helps me to react and execute according to how the market move, rather than to prove me right. It needs to help me to get out when the market doesn’t agree with me.
So, analyze the charts as usual and have your trading plan ready so that you will react and execute your plan accordingly and comfortably. Meanwhile, watch the video below to find out how I analyze penny stocks with pure price and volume analysis:
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Editors’ Picks
EUR/USD holds on to intraday gains after upbeat US data
EUR/USD remains in positive ground on Friday, as profit-taking hit the US Dollar ahead of the weekend. Still, Powell's hawkish shift and upbeat United States data keeps the Greenback on the bullish path.
GBP/USD pressured near weekly lows
GBP/USD failed to retain UK data-inspired gains and trades near its weekly low of 1.2629 heading into the weekend. The US Dollar resumes its advance after correcting extreme overbought conditions against major rivals.
Japanese Yen holds gains as US Dollar loses ground ahead of Retail Sales
The Japanese Yen appreciates as the US Dollar corrects downwards ahead of Retail Sales data. Japan’s GDP annualized growth for Q3 was 0.9%, slowing down from the 2.2% growth recorded in Q2. Japan’s Kato stated that he would take appropriate action to address excessive fluctuations in foreign exchange rates.
Editors’ Picks
EUR/USD holds on to intraday gains after upbeat US data
EUR/USD remains in positive ground on Friday, as profit-taking hit the US Dollar ahead of the weekend. Still, Powell's hawkish shift and upbeat United States data keeps the Greenback on the bullish path.
GBP/USD pressured near weekly lows
GBP/USD failed to retain UK data-inspired gains and trades near its weekly low of 1.2629 heading into the weekend. The US Dollar resumes its advance after correcting extreme overbought conditions against major rivals.
Gold stabilizes after bouncing off 100-day moving average
Gold trades little changed on Friday, holding steady in the $2,560s after making a slight recovery from the two-month lows reached on the previous day. A stronger US Dollar continues to put pressure on Gold since it is mainly priced and traded in the US currency.
Bitcoin to 100k or pullback to 78k?
Bitcoin and Ethereum showed a modest recovery on Friday following Thursday's downturn, yet momentum indicators suggest continuing the decline as signs of bull exhaustion emerge. Ripple is approaching a key resistance level, with a potential rejection likely leading to a decline ahead.
Week ahead: Preliminary November PMIs to catch the market’s attention
With the dust from the US elections slowly settling down, the week is about to reach its end and we have a look at what next week’s calendar has in store for the markets. On the monetary front, a number of policymakers from various central banks are scheduled to speak.
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