SLA has been working like a charm here. Some times I am tempted to bite, but then again my time shall come.
Apparently nobody is reading this stuff, so I'll just point out that the lower limit of this channel is now around 4035. Those who know what that means will make some money. Those who don't have some reading to do.
I would guess there are more readers than you think, I do have a question db, a few posts earlier MadeMan posted a chart with TC drawn in that was changed after the original TC was drawn. I am presuming to know this because I did the same thing. (altered the TC because of PA) but looking at todays chart I see the same situation. My original TC was to shallow to encompass price so I widened it (after the 4142.75 lows at 10 am on the 27th) and the PA has fit the channel like a glove. my question is to alter or not to alter. Thanks PS I do understand the concepts of OS and OB using a TC but price was so far away hence the confusion
You're creating a trend channel where none exists. Therefore, it is of no use to you whatsoever with regard to planning and executing trades. If one had drawn a proper channel, it would have looked like this: You would have got one trade out of it, yesterday at 4270, but that's about it. If price doesn't adhere to the channel lines you've drawn, then the channel exists only in your head. What are far more important are HLs, LHs, and failures at previous important swing points, like 4270. Those price points and levels exist independently of you and are therefore more reliable and predictable.
This is good. I'm appropriating it and reposting it here: Nothing like a burst of clarity now and then.
but DB ... consider this , 1. price rallied beyond the 50% mark of the former down move , rejected a former equibilirium area , 2. retraced to the 50% mark found some buyers , but 3. they failed to take out the high @1. ( no interrest in following price any higher (short op.) as this short may have taken one to at least the lows of 4150ish... and as a mather of fact even lower.. one could now as the lower low is made.. draw in a channel ie. trading in foresight to take advantage of a pot. TC true or false ? EDIT Picture declared wrong NOT HL BUT LH sorry
I don't see the point. By the time you can draw your channel, all the trades are gone. The correct channel is as I've drawn it. But I can't force anybody to do it that way. In any case, the hourly trend channel was done with a week ago. The focus now is on the daily and weekly channels. They're converging, as Gringo pointed out in his thread. There's no need to draw in more channels. The hourly channel which I provided along with the weekly/daily chart must be viewed in the context of the weekly/daily chart, which is why I provided them together. To focus on the hourly chart and ignore the context means lost opportunities. Here is the daily chart with the hourly channel -- dotted -- I posted on the 16th. It should be clear that that channel is of no further use. The daily chart takes over. There is no need to draw anything else.
The ES has been oversold this week, as it was two weeks ago. And it appears to be dragging the NQ along with it, higher, as it did two weeks ago. This will add an extra element of fun to trading the NQ.