Story and conversation with questions and answers as explained by Hans Zimmer can help the technical, financial trader.
Many traders have their trading ideas that help them win.
Such ideas, however, are not a panacea or substitute for all the hard work that goes into understanding how to trade the financial markets.
They are more to do with a traders discipline and a traders personal way of trend and context identification.
Hans Zimmer and answers
We like the thought process of the composer Hans Zimmer.
In composing his music, he says it can be summed up in one word – Story. For the financial trader, the story is the market cycle.
We apply his methodology in our trades. Conversation is context; question and answer notes are price action.
Below we have a series of ‘trade’ questions and answers. For us, the sequence of bars following the green arrows are the questions, and those within the red arrows are the answers.
We will trade a question but only from an entry bar and just as a scalp. Answers, however, can be taken from signal or entry bars as swings or scalps.
When does a question become an answer?
If the bull bar with the blue circle had closed above the resistance – the next price level that is determined by the bars about midway across the screen – this ‘blue circle’ bar might have premised into an answer.
We concluded that the blue circle bar would close low and remain a question. Therefore, we shorted the bar at about the centre of the blue circle.
Accurate enough, the answer bar came next and resulted in over 60 pips of profit in less than an hour.
Hans Zimmer’s explanation of Q and A in his music can similarly help a technical trader maintain the all-important market perspective on the chart.