How do you Trade the CAC 40 ?
I see your blog and your interesting lessons.
Can you tell me how do you trade the CAC 40 ?
Only daily time frame ?
Only buy / sell stop orders (breakouts) ? Or buy / sell orders (with the trend) ?
Only buy / sell stop orders
Daily time frame.
Use long candlestick and window gap trade.
The Basics of Price Action Trading It is impossible to know if my assumptions are true.
Price action trading is based on the price movements in the market.
The smallest move any market makes is one tick.
If a market moves up one tick, it is because there are not enough sellers at the current price to fill all of the buy orders.
The market has to go higher to find more sellers.
If it falls one tick, it means there are not enough buyers at that price.
Day traders don’t have the ability to spend time thinking about anything other than whether the market will go up far enough to make a profit if they buy, or fall far enough to make a profit if they short.
I make several assumptions that allow me not to worry about anything other than the price action on the chart being traded.
It is impossible to know if my assumptions are true, but they are consistent with how the market behaves; if they prove wrong, change those assumptions.
In every major market, no trade can take place unless there is at least one institution willing to take the buy side and another sell side.
Institutions dominate all major markets; individual traders are simply not big enough to have any effect.
Although a trader might believe his order moved the market, the belief is almost always deluded.
The market moved only because one or more bearish institutions and one or more bullish institutions wanted it to make the move.
Even though time and sales might show your order was the only one filled at that price.
The math is too perfect and the speed is often too fast for anything else to be true.
If traders spend a lot of time studying the market, they can see a reason for every tick that takes place.
In fact, traders can see a reasonable trade to consider on every bar during the day.