lol, u dont want my posts!! what i know about is totally opposite in method to what u preach My one and only (useful) advice to your novice students would be to work on your discipline - toooo many traders have gone belly up due to lack of discipline. Never, ever trade bigger unless you're fully in control of your psychology and are adequately funded!! Inadequate funding (translates to an insufficient daily stop loss for me) will strain your discipline. If you've read the journal, you'd see how normal people break down in the trenches when real money is involved (eg. Razor - though kudos to his recent improvements!!)
Ya you strike me as a contrarian looking for good risk vs rewards. Since contrarians rarely nail the entry from the start you feel inclined to use limited use of averaging down techniques to make up for the lack of accuracy in the entries. Am I far off ? Yes, Razor has shown good progress, little more price action polish and he could be on the way to dreamland. I also like how Tech's logic works. Anek
Ave, Sadly I don't have an illustration for the female version. However, I do have one for the upcoming FOMC announcement Anek
I plan on rereading the journal - followed it religiously until you took some time off - already gleaned a lot of gems. I've been calling the Nasdaq moves pretty accurately for the past couple of weeks based on HH LL, s/r, etc... helped the daytrading already. Will be paper trading ur method on some higher priced high vol stocks i've had my eye on however, so far, i've seen that the manipulation the MM's do - running stops (eg. puking or ripping stocks within a second) will require me to use real money to investigate the slippage... luckily a lot of these cases appear to be with the trend.. I
That should be useful for Bernanke for a quick getaway if he doesn't offer a good enough rate cut hehe.
Being only a contrarian used to bring in the gold, it's a little more complicated now, have to be a contrarian to the smaller trend yet be on the side of the larger 2-5 day trend. I also pair trade, and use some price action patterns that become obvious with screen time. But ya, the entry is sometimes far from optimal but if the pattern is still valid I try to avgdown until the next r/s. I'm always looking for better risk /rewards opportunities, that's why i loove your method. Avging up, what a beautiful concept .
Thanks for posting your analysis Rn86 . Looking over your charts I notice in the case of a trend change you will take an entry ( i.e. long ) after just 1 HH and 1 HL has occurred . This gets you in a trend early but I believe for AHG style trades discussed here trend change requires (i.e. long) 2 HL and 2 HH . Or am I completely missing this basic concept , Anek ,anyone ? Chart attached shows trade from friday ES explaining what I mean .
Babe, Different traders different methods. The most basic concept of my choice for trend identification is: Long Double Bottom + 1 Swing Higher or 2 HHs 2HLs Short Double Top + 1 Swing Lower or 2 LLs 2LHs ....but in the end, it's up to the trader, as long as you are always with the immediate trend, you should be fine. Anek