What is space in trading? And why does it matter??

Should traders pay attention to space?

Why?

Why not??

Is it something you must know about, and “see” on the charts to find good trade setups?

Or is it a load of hooey??

Find out what Darren and Walter think about space, and whether it is something you should pay attention to when you analyze the charts.

http://media.blubrry.com/2traders/content.blubrry.com/2traders/2Traders_-_EP29_Trading_With_Space_Part_1_of_2_.mp3

Download (Duration: 19:48 / 22.6 MB)

In this episode:

01:37 – space

06:37 – potential buy

08:28 – technical analysis

09:06 – human behavior

11:13 – consolidation

13:09 – space versus consolidation box

14:45 – filters

15:40 – mental obstacles

18:19 – no control

19:27 – letting go

Tweetables:

Space can help you identify turning points in the markets. [Click To Tweet].

Too much analysis can lead you to feel responsible for losing trades. [Click To Tweet].

If the market is consolidating, it is probably not reversing. [Click To Tweet].

Download The Full Episode 29 Transcript Here

Darren: But for me, that’s exactly the time that you should be taking the trade. In other words, it doesn’t look as nice to trade, it doesn’t feel right and in my experience those were the trades that win for me.

Announcer: Two traders, Darren and Walter, pull back the curtain on profitable trading systems, consistent money management, and profitable psychological triggers. Welcome to the Two Traders Podcast.

Walter: Welcome back to the Two Traders Podcast. I’ve got Darren on the line. How are you going today Darren?

Darren: I’m pretty good Walter.

Walter: So we’re going to talk about space Darren. First of all, let’s start with this, I know a lot of traders like myself, like to trade reversals. They like to find trading points. I know that you do a lot of that too or some of that anyway. It doesn’t really matter if you’re talking about a reversal point inside of a trend or just a straight up. This is where the market is going to turn around here or go away from this spot. A lot of traders like to hang their hat on, you know, the fact that “Hey look, I found that spot on the chart were reverse” and they feel like they’re getting on a reversal.

For whatever reason, it’s easier for most traders that I’ve come across, to find reversal trades than it is for them to jump in with the trend. Even if you’re trying to trick yourself and say “I’m getting this reversal where the market is going counter trend here and I get on in this reversal even if it is in the midst of a strong trend.”

One of the things I look at is what we call space. The room to the left.