(basic & advanced)
To profit consistently over time, a trader needs to be able to do 3 things:
- Make sense of economic trends and global investor sentiment
- Determine the context of price (whether it’s ‘high’ or ‘low')
- Interpret price action and take, manage and close trades accordingly
Here’s what the basic framework looks like:
Here's what the framework looks like when all the extra bits are added:
It can sometimes be a little overwhelming to look at the entire framework as one big system…
… which is why I look at each component within the framework as it’s own independent self-contained “node”.
Market fundamentals are a node … but within this node are independent sub-nodes. The Commitment of Traders is a sub-node … just as stock indices are a sub-node. Both are unrelated and totally separate.
When I started looking at the framework like this — things became a lot less overwhelming and a lot simpler.
Click here to continue… (Page 4 of 6)