Bride of If You Can Draw A Straight Line

Discussion in 'Journals' started by dbphoenix, Oct 28, 2013.

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  1. niko

    niko

    It sound like a nice trade though :)
     
    #411     Nov 8, 2013
  2. niko

    niko

    10:22 DL broken
    10:26 RET but skipped the short as it would send me again inside the TR between 25 and 37.
    10:30 SL broken, but no entry so far :(
    10:33 DL fanned, waiting for a RET.
     
    #412     Nov 8, 2013
  3. dbphoenix

    dbphoenix

    I thought you went long at 37.5.
     
    #413     Nov 8, 2013
  4. niko

    niko

    Yes, but then couldn't find a reason to stay at the break of the DL so I closed the long. As I said the short at the RET was avoided because it would have pointed me towards the area that I labeled chop previously.
     
    #414     Nov 8, 2013
  5. niko

    niko

    10:40 RET and entry at 48.75, DL broken and long closed.

    Feeling a little anxious and I think I lost my focus (based on my inability to take the short here. I will call it a day.
     
    #415     Nov 8, 2013
  6. Hooti

    Hooti

    Have a great weekend. Thanks for your posts
     
    #416     Nov 8, 2013
  7. dbphoenix

    dbphoenix

    Look at what price does after each of the rets made within that range, at 1003, 1006, 1010. The first reaches a point before falling back. The second reaches two and a half. The third reaches a point. The last, at 1015, reaches seven points in a single surge. This is not something to be shrugged off. At the very least you should wait to see just how much strength buyers have before bailing out on a good entry, regardless of whether the demand line is broken or not. Given the context, provide price with some breathing room.
     
    #417     Nov 8, 2013
  8. niko

    niko

    Interesting, I really never focus on that (wave strength) as I SHOULD :mad: .

    It has been a very interesting week. I will see how can I incorporate this into my rationale during the long weekend.

    Enjoy the holiday!
     
    #418     Nov 8, 2013
  9. Hooti

    Hooti

    I'll have to do replays and let that soak in also... Thanks
     
    #419     Nov 8, 2013
  10. dbphoenix

    dbphoenix

    It's not a matter of wave strength per se but of how traders behave when they are leaving or have left chop behind. You played the chop correctly, if you were trying to avoid it, but the surge when price is exiting the chop is a signal that it's ready to go, and that's the time to set aside the lines and focus on price. Getting into "wave length" as so many people do, thinking that it provides some sort of quick-and-easy answer, is not going to accomplish much, if anything.
     
    #420     Nov 8, 2013
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