You should always have a plan for the day.But sometimes the market just doesn’t behave the way you anticipated.You exactly know at what levels you want to enter a stock and where your targets are. Then the stock comes to your entry level ,but it doesn’t continue to go from there. Instead it pulls back on increasing volume,holds, then gets through the level again.But the volume on the advance is still lower. In those situations I often feel the urge to buy the stock,but the volume pattern is holding me back. Most of the time that has saved me money.
Even when the stock continues to go up,I would rather wait for a better entry point,where the volume confirms the price action. I want to have as much factors working in my favor as possible. That is why I named this post “trade what you see,not what you want to see”.It is easy to tell yourself that everything is going the way you planned it and ignore the warning sign that volume shows you. Of course you also have to remember that all the indicators,as complex as they all may be,are not systems. You have to use them to give you an idea were things are going. But the system has to have specific rules on how and when to use those indicators.