🧠 Trading Psychology
What is FOMO?
Fear of missing out.
What defines bullish structure?
HH + HL
What is the main job of the 4H?
Bigger structure, directional context and major levels
Is a W generally bullish or bearish?
Generally bullish reversal structure
What does SMA stand for?
Simple Moving Average
Why is chasing a trade dangerous?
Chasing usually means poor entry/risk-to-reward and emotional execution
What makes a HL meaningful rather than noise?
A meaningful HL contributes to the move that creates/extends the next structural high; every small dip isn't structure
What timeframe do we use for execution?
Lower time frames 3-minute, 5 min, 15 min
What level must a W overcome for confirmation?
The neckline/resistance needs to be broken and confirmed.
If price reaches the 200 SMA, what should you do before assuming continuation?
Watch the reaction/confirmation at the SMA.
You missed an entry. What should you do instead of chasing?
Wait for another setup/pullback/confirmation
Price wicks below a meaningful low but closes back above. Is that automatically a structural break?
No—a wick alone isn't necessarily a confirmed structural break.
4H is bullish but 3m is bearish. What could the 3m bearish move represent?
It may simply be an intraday pullback within the larger 4H bullish structure
An M forms but the neckline hasn't broken. Is the bearish reversal confirmed?
No.
Price breaks the SMA but immediately closes back underneath. What does that tell you?
Buyers haven't demonstrated clean acceptance above it
You have three losing trades in a row and feel the need to “make it back.” What psychological mistake are you approaching?
Revenge trading
In bullish structure, which low matters most?
The protected/meaningful HL supporting the bullish move
4H bullish leg is holding. What must happen before taking calls on the 3m?
Wait for bullish 3m confirmation rather than blindly buying because the 4H is bullish.
A W forms directly beneath major resistance. Why shouldn't you automatically buy it?
Because resistance can reject price; the pattern still needs confirmation and room
Price breaks through the SMA and then holds above it. What does that suggest?
It strengthens the bullish continuation case, assuming structure and room support it.
Your setup is valid, but you're scared because your last trade lost. What should determine whether you take this trade?
The trading plan and whether the current setup meets your rules—not the previous trade.
Price makes several small lows during a bullish move. How do you determine which one is the protected structural low?
Identify the low associated with the leg that produced the meaningful bullish continuation/BOS rather than labeling every small pullback.
4H remains bullish, but your 3m bullish structure breaks while you're in calls. What should you do?
Manage the trade according to the 3m structure that justified it—protect profits/exit or reassess rather than assuming the 4H bias guarantees immediate continuation.
An M appears at a major HTF resistance area and bearish structure confirms. Why is this stronger than simply seeing an M?
Pattern + important HTF location + structure confirmation provides more evidence than pattern shape alone.
The 200 SMA sits between your entry and liquidity target. How should that affect your trade plan?
Treat the SMA as an obstacle/reaction area before assuming price will reach the farther target.