More on Perspective – and why it matters

  • Timeframe
  • Goal
  • Trade entry
  • Position size

All the above certainly matter for a trader when embarking on trade setup planning, preparation, and execution. Today I wanted to highlight the “Timeframe” and “Goal” portions and expand on my earlier post on Perspective.

Recently I had on a long trade in FST (Forest Oil). Here is the Daily chart I posted before starting a position:

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As you can see I note the Gap Fill opportunity – this being the Goal of the trade setup – and the timeframe being – well, you know, the time needed to complete the Gap Fill. Now let’s add some perspective on things. Here is a recent Monthly chart to digest:

Always good to make sure that you understand what has happened to the left on the chart so that you know all the relevant perspectives.

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