9:31 buyers trying to exit the small 39-42 chop 9:33 already out 9:35 Long at 47.50 DL fanned 9:40 DL in trouble 9:42 SAR at 46.75 9:46 Out of short. SL gone. 9:55 Chop 9:58 Out of chop. I guess My exit at 9:42 was the mistake. Although price had broken the DL the fact that Buyers managed to take prices above the premarket congestion was enough reason to give them some chance. Getting in again would have been more difficult as the SL break was followed by another congestion. 10:00 Long at 57.75 DL Fanned.
10:04 DL broken 10:05 Are we in a channel that started at the open? 10:07 While i get a reply to my question short at 54.25 10:12 SL broken. 10:13 Long at 55.75, not looking choppy just yet 10:21 Buyers giving up, DL broken and RET, short at 56.75
10:25 Not an easy morning, unless one is smart enough to take the first trade and sit in one´s hands 10:32 Failing to exit the chop.
After the test of the 50% of the upmove - which could now be interpreted as a false break out of the 60M hinge - we are currently at the midpoint of that hinge... Buyers seem to be strong and DLs can be fanned - to dive back into the scope of the thread (sorry DB)..
I was just thinking the same thing. Db might say this was a one trade day (so far), unless you add on, etc.
It was one trade day for those who give price some room to breathe. If one has a plan to exit right after the break of DL/SL then of course it's a different story. The point is to follow whatever one has planned to follow, and later identify the changes that need to be made. This thread isn't about 50% retracements and is focused on the DL/SL mostly. Once one gets the hang of following price after DL/SL break and Ret, one would naturally start questioning why one wasn't able to stay in longer. When that question is asked other possibilities are going to open up, and then the growth of the trader will hopefully take place. This thread gives the basics, the essence, of how to follow price. This essence is good enough to keep one away from large losses and in most cases get reasonable profits. To go beyond the basics will eventually required the training wheels to come off. That is when swing highs, lows, 50% retracements, giving room, partial exits, and other questions are going to come to the fore. Gringo
Yep, I posted something about the 50% in the son thread, for those interested http://www.elitetrader.com/vb/showthread.php?s=&postid=3899672#post3899672
Thanks Gringo, it does help to hear that. As we trade focusing on the basics, you can't help but notice those other aspects. Skill sets in the making.
Those of you who are comfortable with the whole demand/supply/retracement thing that is the focus of this thread are welcome to get into or back into hinges and 50% levels and so forth in the Son thread. HOWEVER, unless and until the demand/supply/retracement trades are second nature, you will only be prolonging the process by incorporating 50% levels and hinges prematurely. Up to you. But until then, please leave that stuff out of this thread.