"One trader sees a breakout and understands that is technically "bullish" and takes the trade. Another trader is asking questions...
- How far has price already travelled today?
- How does that compare to an average day?
- Why might today be any different?
- Has price broken enough to take the buy stops?
- Are those buy stops shorts puking or longs initiating?
- Have retest traders using buy limits had a chance to get onboard on any timeframe?
- Where will shorts puke?
- Where will longs target?
- What's the bigger picture telling us?
- Is price behaviour confirming my opinion which is based on the net result of my understanding?
So I take entries with more confidence when my understanding is deemed to be right by the price action."
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