Brett and I may not agree on our core ideas about trading psychology but this is an EXCELLENT description of reading price action intraday. Clearly in my mind, this is Trader-Steenbarger speaking … and thanks to one of our readers for asking me to comment.

http://tiny.cc/i1r2e

Within the words is the real question everyone actually cares about – is someone going to pay a different and better price than me in the future? Many traders forget that this is the only game they are playing. It isn’t about the ema’s or the fibs or any other interpretation… it is only about predicting the behavior of other smart humans in whatever timeframe you are in for. You need to have your probabilities yes but to that you must remember to ask – does my gut tell me this is right. The ultimate skill in trading is to be able to integrate both kinds of data – one is mind based, the other is feeling …. and this is the science and art of trading.