I think mastering one setup should be your first goal. But then add another, master it again. Next...
A. For what it's worth. This is my current attempt at a synthetic trendline break indicator. Just playing with programming thoughts, not suggesting using indicators. Looks similar to ANEC bars.
Anek: I am new to trading but reading this thread over a few times has been enlightening, to say the least. Hope you don't mind a few noobie questions. For trading ES would u suggest 5000 or 10000 vol? In a strong uptrend when the retrace is shallow (less than 50% fib) do u recommend entering on a close and a "magic tick" above the last HH meaning with a break of former resistance now becoming support? Let me add my thanks to the hundreds of others who follow your great work.
It pretty much works on any instrument as long as it's trendy. Some equities are more erratic than others is up to you to find what's appropriate. Have not daytraded Equities in a long time so could not tell you what's hot now. Anek
Discrat, Sure, rectangle formation with evident S and R. When price breaks out, don't just trust a closing bar, look for a higher tick to come afterwards so you avoid the typical first wave fake. Better if the play is with the trend that preceded the rectangle. Anek
The magic tick is mostly used to confirm entries on patterns. It can be used as reference on trendline breaks but the real gold comes in patterns. It's purpose is to increase accuracy and avoid a first wave fakeout. Nothing works all the time the sooner one accepts this the more relaxed you will trade. Anek
The paintbars at the moment are nowhere near as efficient as I would like them to be. Better than Moving Averages and Heikin Ashi but not good enough to distract concentration from price action itself. If they ever become an asset I will share them for free otherwise to the trash can. Yes, psychologically it is hard but if you are looking for a high accuracy big winner small losing system I cannot give it to you. I still lose multiple times a day, just small. It does not bother me, it's part of how this stuff works. Three,four,five losers who cares, when I really catch the ball they become a thing of the past. Why do you think the failing percentage is so high in daytrading ? Some might say lack of edge, some bad money management, etc etc. Predominantly I think it's the very same psychology barrier you speak off. Traders have absolutely no problem allowing losses to become bigger, possibly because they have to be right or cant' handle a small drawdown (what a concept) but as soon as something runs their way they are quick on the trigger to take profits and that's no way to beat this game. Anek
Ya that's a great approach. Just don't overdo it, 3-5 setups at the most and you are good to go. Anek