Insights
- Steven
- 6 days ago
- 1 min read
Wandering through this kingdom of tracking momentum and trading with a little context the shape of the land has taken form and some features can be noted. Certain conditions around 'better' entries and recognizing that our ability to identify better and worse conditions is a form of contextual thinking. The context emerging directly from momentum on the one hand could be a mixing or combining of these opposing perspectives to a degree of embodiment; or that momentum is a form of rotation intrinsically and we're just now being able to see the reality of that. Both these interpretations of course themselves lie on some spectrum of perception and both fully explain the existence of the pattern.
Better entries as mentioned in the video revolve around taking trades against everyone else. The best trades are when you are alone in your position against the crowd. This contrasts with our previously held rule of thumb 'never be in opposition', which was pulled from contextual thinking. When tracking probabilities we never want to oppose them. This idea holds true as the probability scales toward direct momentum. Yet in these areas of support/resistance being in opposition to the crowd is not only the exception its a necessary for finding high quality entries. We are never in opposition to the 'market' or to 'momentum' we're only in opposition to the crowd when we can determine that the whole crowd is in opposition to the market at the wrong times.
Good Trading.
