From what I've read here I would have shorted that on that first red engulfing bar just outside the blue box you drew. The failure of such a beautiful formation had to trap quite a few longs. Would you agree with that trade, or am I wrong on that one?
Price travels through recently visited areas much more smoothly and swiftly (between support and resistance) than when approaching new uncharted territories. It is only when it reaches a significant support or resistance area that it has important decisions to make. Until that happens it can go anywhere because it knows the "neighborhood" well. It is familiar with its surroundings. As screen time and trading skill improves you will start noticing several characteristics in price. Characteristics that will enhance your scalping and increase your targets. For instance even if price is falling hard there is a very good chance the very first test of support will hold very well. Yet the second will prob have less chances. If the second holds as well as the first then a potent pattern like a double bottom forms, and potent for a reason. Needless to say the point is that certain quirks about price are picked up over time and when you know some of these you tend to create your own intrepid plays and break a few rules. An up swing is just that one swing, an uptrend requires two. Think of support and resistance as a barrier made of wood. The more times you push it the greater the chance of breaking but just kissing it won't do it. Support by definition is meant to support, reverse for resistance and eventhough the trend is your friend you don't actually know if the trend will be strong enough to break the wood until it actually does. In my experience the stronger the support and the stronger the resistance the lesser the chances of breaking in one test and the more times it will need to be hit to be broken. In fact, only consider support broken when that support becomes resistance or when that resistance becomes support. Learn to identify the chop and noise, they drain our profits. Anyway, I deviated quite a bit from your original question but the fact is screen time allows you to cut corners here and there and when you can finally form an edge from those quirks it is only logical to exploit it. Anek
Agree I love failures but not every trader is psychologically capable of switching sides in an instance. Takes time. Anek
Anek I know my vote doesn't count (A anyway) but just because you don't post doesn't mean you can't read, love the thread especially the charts very very helpful.
Thanks, the rule of 10+ post was just there to limit the possibilities of voting for myself so wanted to make it fair. Afterall, this is ET every fart must be audited ! Anek
Hey Anek, So glad you're back. and to answer your poll. Huge F@cking A ! I'm telling you for everyone of us that responds there are so many more that read and read and read. They may not respond due to shyness or still want to practice on their own But I can assure you of one thing. You've influenced a lot of people. ( and not just in terms of dollars and cents)
I can't say I've read more than 5% of the 'AHG Journal' posts but from what I've seen you're helping many new traders w/ an approach that works ... so "A". In addition to my own studies and assessment of price action, I'm always interested in the analysis and conclusions of other successful traders & approaches. While many / most will not fit my own style, they frequently will make me think and more-cloesly evaluate my own approach. Keep up the good work, ignore the trolls (>95% are losers, and the others are just jealous). It's all adding to your karma-bank. ET can use more anti-trolls ... R
Hello Hope, the size will make up for the lack of number of posts. fwiw, never posted on any other thread except this one on ET. A big A for you anek Thanks sn