I was working the ES 5min with a student as it was unfolding today. I thought the interaction would have some educational value and allow me bring some points across. The first chart shows a Modified Schiff Median Line setup that looks easy breezy. That chart is useless to me without the 2cd chart. It would be guessing.

Its not an interesting trade or a big trade but what makes it a high probability trade? It has nothing to do with techniques or methods.The Language of Price was telling a story and at some point I understood the context in time to take advantage of it. Its the hardest thing to do and the hardest thing to teach.

As we start to learn about trading and markets we need techniques, setups and rules to guide us. That and money management keeps us in the game but Its only a start.. Trading is a creative endeavour, don't get stuck on just the techniques and rules.  Begin to truly understand the principles behind our tools and about how markets move. There is nothing random in price, just our lack of ability read it. 

So how do you get that experience? inch by inch, step by step...

Shane