Yes probabilities are for a reverse, but as usual you should treat it as a regular resistance and wait for a confirmation I'm very aggressive in this type of plays because I've been using them for a long time and I know them pretty well. Keep an eye on the gap play and see if you can add it to your arsenal
I was enchanted by the beauty of the channel, it put a bad spell on me Naaah plain stupid trading, that's all
Channels When a channel forms you should only take trades with the direction on the channel. Preferably when you see double confirmation. If a downtrend channel, bearish formations (weak bars) at the resistant downtrend line. If an uptrend channel, bullish formations (strong bars) at the supportive uptrend line. You will notice that if price wants to break out of the channel it will most probably won't form the strong or weak bars that you need to enter the trade. This is a security measure, use it wisely. You should not trade against the trend unless the opposite end of the channel confirms as a W or M formation. These are low accuracy but very good reward trades so completely optional. Sample from today. This is very simple yet a money maker. Anek PS: Don't forget to watch the filtered time and sales for even extra confirmations
A. Is it just a discretionary interpretation on whether to call a formation an "M" or a double top, a "W" or a double bottom? Seems like the same taco, with beans, guacomole, rice, meat, cheese and sauce all just mixed a little bit differently, still the same meal, or am I missing something?
Probably a matter of opinion, perspective or technicals so I can only provide you my point of view. It's all the same stuff, just keep it simple. Noise due to panic or euphoria tends to play games with the edge points but in the end it's all the same. Second top being lower or second bottom being higher is probably a better signal but in the end it's all the same. Anek
Chaos, The strong bars are bullish engulfing and the weak bars are bearish engulfing such price action at the right places do not require large stops. I'm a trader of small stops as I'm not afraid of small losses only of large ones. Sometimes you must pay for information but how much you are willing to pay is entirely up to you. For the most part a few ticks above or below the strong/weak bars is enough as I'm willing to re-enter should the next signal come seconds later but protect my capital I must. I would rather take two small stops than just a big one because if I did re-enter I did so on multiple confirmation scenarios, therefore, increasing my odds of success because I'm a firm believer of my price action analysis but I'm also prepare to swallow my stop at any given time. Anek
Hello everyone! I'm very pleased to see a constructive thread such as this one on ET, hard to find nowadays, so i want to thank Anek a lot for taking such an intiative. i knew you're legitimate when you excluded indicators for the most part, which supports my beliefs. I believe that indicators are either invented by the smart money and pushed on the general public to re-route their attention away from the real indicator _ price, or they used to work at some point but not any more such as anything in trading. i struggled with indicator for the longest time but now i'm only focusing on price action with 2 indicator for refrence and assurance only. I'm a little behind on the reading ( page 77) but i've only saw this thread a couple of days ago. So, i plan on catching up in a week or two. Although I plan to trade stocks, the strategies demonstrated here are universal and should work for most markets. I work full time and go to school full time, so i stopped trading for now, but i'm preparing myself for a come-back; studying the markets, studying charts, analyzing price action and getting acquinted with tools available. Again, thnx Anek for such a helpful real thread, and i will be followig your progress and comments closely. Best Regards.....Simon
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Been there, been there. Sadly, it's a textbook illustration of a counter AHG type trade and what can go wrong in that situation and then what can happen avging down too, since it was clearly a rescue move. It happens to the best of guys from time to time. Just don't do it again!! Still, this is great for any AHG follower to reaffirm the idea of only trading in the direction of the established trend. When getting a reversal out of that trend, wait for the new setup not just one H and L unless it's a double bottom as the second bottom counts as one of the setup lows.