2015issue C086
Post-exit cooldown as a system rule
The archive workflow treats the rush to re-enter after a close as a handoff of process-control to the market. Editorial reading: if the pre-trade-checklist has no settle-down gate, a rare favorable gap and an ordinary exit both become permission slips for leftover excitement to write the next signal.
- Post-exit-impulse is the habit of hunting a new setup as soon as a position is closed, instead of leaving the desk.
- Process-control stays with the trader only when entry, exit, and stay-out decisions come from pre-set rules, not from leftover profit-seeking.
- The pre-trade-checklist asks for risk tolerance, intended time frame, market-phase, and the discipline to follow a defined system before any new order is considered.
- Price gaps are described as rare, and a favorable-gap-pause is prescribed after one that moved the desired way. Editorial reading: the same cool-down belongs after an ordinary exit.
The hurry after an exit
Immediately after an exit, the common habit is to search for another trade instead of leaving the desk. The archive presents that post-exit-impulse as the way traders hand process-control to the market.
Markets are characterized as emotionless, unaware of a trader's objectives or identity, and random.
What must be known before any new order
Before acting, a trader is told to know risk tolerance, the intended time frame, the current market-phase, and to have the discipline to follow a defined system. That pre-trade-checklist uses market-phase as a label for whether price is trending or stretched into overbought or oversold territory.
Attention is supposed to be narrowed, layer by layer, until only a few instruments remain under consideration. Instrument-narrowing still leaves analysis incomplete, because price can move opposite the anticipated direction.
An unanticipated price path is described as realistically likely, so a favorable move is framed as the smaller chance.
A rare gap already requires a pause
Price gaps are described as rare. When one moves in the desired direction, the prescribed next step is to leave the screen long enough to settle before considering another trade.
That favorable-gap-pause is a mandatory cool-down taken away from the screen before the next setup is evaluated.
All readings on this track · 11 readings
- 1987Broken bias: stops, cash flow and unfilled gaps
- 1999A surviving weekly gap still needs a confirmation-breakout
- 2000Repeatable volume-price silhouettes as falsifiable hypotheses
- 2004Constructing pivot commonality across timeframes
- 2005A finished crude-oil top as a classroom for necklines, candles, and gaps
- 2007Journal a gap breakout as three sequential gates
- 2008Same-open kicker as a two-bar reversal case
- 2010Filtered gap follow-through entry rules
- 2010Cloudbank overhead resistance and breakout recovery
- 2015Post-exit cooldown as a system rule
- 2018Classifying chart gaps before fill or follow