Pax, Most of the time swings up or down are not as swift as the chart I posted but more like zig zag looking waves. Now, when momentum is strong look for hints like that to know when it "might" be time to get out or stay alert. Anek
1) Say a DB fails if I see a lower low and a lower high forming after the failure I usually jump short on the next pop failure. On friday afternoon the market took down support and broke the double bottom that formed at the lod, this was against the trend so the buy point was after taking the middle swing high and not underneath support. As far as riding the failure a lower low and lower high aka swing low below that double b was never actually formed, because it was all a fake. Then the market returned and took the middle swing high exploding to the upside for a very nice target. Conventionally people go long when resistance is broken and go short when support is broken. The question is what exactly does "broken" mean, well when support actually becomes resistance and when resistance becomes support. In other words a swing confirming the action after the s or the r were taken. Why is all this confirmation necessary ? Because it increases accuracy decreases fakes and allows you to trade with confidence. 2) I look for many things but the key is waiting for some evidence in those bars and/or the tape. 3) For me to call a reversal assuming the previous trend was long I need to see a double top followed by a ll and a lh or 2 lls and 2 lhs. Major trendline failures are extra confirmation. Make sure you look at the big picture to understand how important or unimportant those areas really are. The more important the more it will be fought by the defending side. Anek
Ed, Attached please find the buy signals study, some were correct others were not. Remember that if you do this correctly and you base your stops on support and resistance the risks are minimal. Hope it helps. Anek
Thank you, that was helpful. I am used to candlesticks and did not notice the wick. At least I know I am on the right track. I plan to read thru the thread again for more insight. I am currently a S/R -Trendline swing trader and your style of scalping fits in with my mindset. I have been playing with various scalping strategies with mild success. I am hoping your insight helps me to codify a scalping style that works for me. I appreciate your taking the time to respond to my questions.
Ed, Happy to hear it helped. The easy part is reading the journal and understand what to do. The system is logical and straight forward. I usually say, the moon the stars and the sun must not all be aligned for this to work in the long run. The hard part is the trader's ability to apply this responsibly. Since I started the journal one of the things that surprised me the most is the lack of comments based on choppyness. As commonly known, sometimes the best trade is no trade. Knowing when to stay out is possibly the hardest part of AHG aside from discipline. Anek
That is what I figured. Thanks. That is why I posted a few trades that seemed good to me, but did not seem to work out. My first goal is to identify what to avoid.
Thanks. That is what I was thinking. I am very exited to start watching the charts in realtime on Monday. I have no stoudts here but I'll knocking back a few laugers in your honor tonight