Decision making: less information is better

Setup: Daily Chart, before the market opens price is at prior days high:

3 Min Setups to both the upside and both the down side and RED and GREEN BARS (TOO MUCH INFO IF YOU ASK ME :-):

Decision making is easier if there are fewer but more valid information available:

1. Its more likely that price will go down if there is no long setup ABOVE prior days high or at a strong intraday double bottom (today we only seen setups AT but not ABOVE prior days high in crude oil)

2. The usual entry (a confirmed break below the last 3 min swing low) served as a perfect entry:

3. Whats more important than the entry is the target, as it gives the trade a reason, for example just going down to prior session close (slightly above 41) and then exit with a limit order would have been wrong.

Summary for this week theme: 

• Everyone was waiting for a good setup, same as your body needs rest the market needs to rest before a big move happens
• If there is no low risk setup on the 3 min chart as the market approaches the reversal area too fast, change to a lower timeframe (512 tick) so the volatility does not scare you to enter.
• Plan for one stop out but keep stick to your daily plan even if you lost before.

In the end its pretty much only a probabilites game:

• SHORT THE WEAKEST MARKET AT A TOP (or at a 50% retracement)
• GO LONG THE STRONGEST MARKET AT A BOTTOM (or at a 50% pullback)