One of the most important tools we can put
in our arsenal is the ability to anticipate and think ahead, much like
Masters of the ancient stones game of Go or Wei Ch'i think and plan many
steps ahead of their current move, anticipating the moves of their
Rather than passively re-acting to the market's action, you should
train yourself to be constantly anticipating what "may be," as
each bar unfolds in real time before you on your screen. Ask yourself,
"What if price makes a pivot here? How will that play out? What are
the possibilities? What edge can I use to exploit the situation?"
This is where the true magic of these tools us can be found. You should
constantly be aware of the price levels where the Median Lines, MLHs,
sliding parallels, warning lines, tests of tops and bottoms intersect with
price. And you should be constantly replaying "what if"
scenarios in your mind as price unfolds before you.
If you carefully combine these tools with anticipation, you will be
based in action, rather than be left
behind in reaction.
Chart below from Tim
A few times a year, I post my actual working chart at the beginning
of the day, just so people can see the screen shot of the chart I am
trading from...I haven't highlighted dominate lines or decreased the
clutter. This is what I see all day long.
When I get "stale," I erase the whole lot and start over again. But
while I am "hot," I just keep adding on.