Thanks P, appreciate it.
This is what new traders miss, they focus strictly on the price, and forget that time is passing. Although it may seem esoteric, as traders we have to remember that the data point is not traveling on the X axis, only on the Y, It is as if the data point was floating and the chart was moving behind it. The willful or general ignorance of the time factor is what generally leads a trader to turn a profitable trade into a negative trade, or at times to miss a good entry, take a needed stop etc.
This is why I like to call where we function as traders as Price/Time. Time is as important as the price. If you look at today’s action on the EUR/USD, and then look at the trade I took on Ria’s thread, you can literally see the time decay as far as momentum is concerned, we were headed to a breakout level, but the longer it took to break out, in a convincing fashion, the less probable the breakout became.
You can see small buy positions were being taken, no doubt in anticipation (an emotion) of a breakout, but as time passed and no one showed conviction, evidenced by longer candles, shorter wicks and tails, and possibly an upward moving ATR, price eventually dropped back to the consolidation level, with everyone getting out.
Time will get you everytime, hehehe, if you don’t pay attention to it, the longer you are in, the greater the risk, the more stuff that can happen that would be a surprise, so always take time into account in every trade you make, it really should be part of the plan.
The Ever Tempus Fugit VIPER