The Trouble With Scribbles

This was the low with fresh upside momentum.

 

--04/13/15 RTH Short NQ Jun at 4411.50. Initial stop loss is 4455.00
--04/14/15 RTH Price is 4391.00 Staying short with same stop for now.
--04/17/15. RTH. Price is 4346.75. Staying short for now. Stop lowered to 4439.00
For thread integrity purposes, this was stopped out at 4439.00 for a 27.50 pt loss

 

Please don't analyse intraday charts with the RSI (and most other oscillators). It repaints and what one sees at the right edge can be very very different in hindsight charts.

I learnt it the hard way and since then, I regard any intraday analysis using oscillators such as RSI and MACD as make-believe.

 

Here is analysis of the Thurs 15 min chart. There is one bonafide trade identified. The system picks up no trades on the 15 min chart on Fri.

 

Now--the 5 min chart from Fri. It always pay to keep several time frames open at once as it is necessary since trades may not present on the same time frames each day. Don't trade until you see it. Once you see it, it is unmistakeable. As has been shown before, the scribble method is unremarkable as it is static in its analysis since it uses information that is too old. There are other newer, more dynamic methods of discovering entries, exits and stops using indicators. This requires very little preparation and focuses heavily on stop placement. The scribble method doesn't say a lot about stops. There is trouble with scribbles.

 

RSI and MACD are two of the most important tools in entry,exit and stop discovery.

 

You cannot be serious.

 

So far, the only complete plan shown has been mine, so not sure what you are driving at.

 

Extremely.

 

This particular ship has sailed.