Pax asked me about Double Bottoms via PM. It's a common question so decided to attach a simple explanation on how I play them so others can benefit from it. It is very important that you understand this is not a scalp this is a massive reversal type of intraday swing offering one of the best risk vs rewards in trading. When you play one, don't shoot for 3 ticks Hope it helps and Happy Labor Day to those in the US. Anek PS: Reverse for Double Tops EDIT: Attachment bombed, see next post
Far, Not long ago I posted an example on how to ride failures, very powerful stuff as you enter with the trend while most traders are all shook up. It is your duty to readjust your mindset INSTANTLY so you don't become a dead duck, like the rest. This can also be applied to failed head and shoulders and numerous other known patterns. Do not be afraid of small losses. Basically, as soon as that support is taken, on the first retracement (not too long) wait for a sign of exhaustion, this will help you avoid some of the fake calls. Something like, breaks, pops, a micro lower low (assuming double bottom failure) and off you go. Use a trendline and highs/lows to guide yourself, once again, be greedy, failure or not these are not scalp types. Search 1-2 weeks you will see the example in one of my charts. Not directed personally towards you but lately I've been reading the same questions over and over again. I invite newcomers to READ the journal from beginning to end, only new questions should be posted now to avoid redundancy. This journal is becoming way too big. Anek
Hi, Hope you guys had a great holiday weekend. Anek it's good to hear from you again. Quick question for you guys, I know the majority don't use fancy indicators but I need to know what to use in this situation. Lets say there's a strong trend and during the retracement I'd like to enter. and I want to see the volume being low during the retracement to know the trend will likely continue. Ok so what volume indicator should I use. I'm using OEC (open e cry) so my choices are: Volume Oscillator Price Volume Trend Regular Volume Bars. Do you guys prefer any type. I dont want to use too many indicators. I tried RSI but it contradicted what the Price Action/Trend was saying too many times. so I didnt want to confuse myself anymore. So I'd like to know what is the volume indicator you guys look at to get a better idea if the retracement is going to lead to a trend continuation or reversal. and if you can configure it, what parameters do you guys set for Volume bars ? Thanks Everyone !
Here is a new question I saw posted not long ago. How can you tell the difference from a retracement and a possible reversal ? Well, in theory it's a "bet", which is why it's hard for some people to trade this way, they see price going down, even if the support is not taken and they shit their pants, or worse they want to short a support that has yet to be broken. Anyway, one way to tell that helps is that retracements usually happen on lower volume where reversals usually start on increasing volume. If you using volume bars you will see them print very rapidly in comparison to when price action was calm. Hope it helps. Anek
Booyah, Trendlines, the more the better. Support/Resistant Pivots Time and sales Custom Price Action (learn to code Easy Language), sometimes you just gotta make this stuff yourself. Everything else will place you at a disadvantage due to lag. Do not give up on price action, highs and lows is all you really need. Anek
I hope my question doesnt seem repititive I know you guys spoke about it this week. I know volume is the key to helping clarify what the retracement will lead to but, Is there any particular type of volume indicator you guys look at or just the bars ? also can you configure it in any particular way ? if you guys are using volume oscillators please advise what your experience has been with them. Thanks Guys ! Im really curious to know what type of volume bar,oscillator, indicators you money making pimps are utilizing. Have a great trading week fellas !
Booyah, I use the "printing speed" of the volume bars, also time and sales to see how hard those cars are being sold/bought and last but not least consider a small 3-5 min chart, in a small corner, with a regular volume indicator. Nothing too distracting but visible enough for confirmation. Study it before depending on it, some cannot make sense out of volume and will claim it is useless when in reality it's the trader him/herself. I don't depend much on it but on KEY areas it can be very revealing. Anek