We must always adhere to our trading plan and stick to the rules in order for us to succeed in the long run
an example of how I do my analysis
The reasons for taking my FTSE trade were the following .....
1. downward sloping trend line
2. series of lower lows and highs for the last 3 days indicating a bearish trend
3. 200 MA - always acts as resistance - whether on downside or upside
4. gap fill resistances at 5240, 5252 and 5257
5. Oil negating a bull flag pattern and putting in a lower high
6. Eur/usd resistance @ 1.5050, and reaching the days double top high at 20.00 @ 1.5030
7. DAX reaching its 200 MA @ 5798 ...my strategy is alway sto sell/buy at 200 MA....so I must obey it as it work for me 80% of the time .
8. UUP trading sideways and not putting lower lows
9. head and shoulders pattern on nasdaq 10 min chart
10. 61.8 % retracement from the high of yesterday = 5228
11. sp500 reached its 200 MA
and a a few more stocks I look at
I have attached a FTSE chart to depict the following explanation
My chart tells me we will gap down tomorrow to 5225, 5215 and possibly 5210
If my analysis is wrong then i will close my FTSE position as I always trade with manual stops now, and i will close my DAX position too