Friday, April 20, 2007

Must Remember to Use the Hourly chart

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Earlier this week, I wrote down in my personal journal notebook to start looking at the hourly chart in conjunction with the 5min. chart that I usually look at for the futures contracts that I am trading.
The hourly chart not only provides a good sense of direction, but it also helps to identify what I call "reaction" spots that previously occurred for that futures contract. These reaction spots usually leads to a good buy/sell opportunity.

Unfortunately, today, I just totally ignored what my notebook told me to do. Had I looked at the hourly chart, I would have identified 1484-1485 as a previous reaction spot. Instead, I wound up overtrading again from trying to chase the trend, and gave up much of the gains that I got from following the OMNI. I feel angry and frustrated at myself for failing to heed my own reminders. It's not a good way to end the week.

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