I guess you could say turn the triangle in its direction. This is a projectile from just 3 points. Michael B.
I am sorry I am not good at thinking slowly..LOL I did attach charts then i guess i removed them. I had to convert to this format from another so i have a paitr of pics for each UGH Her is the order according to file name" it's 745 800 plus point3 the trend the channel end of trend starting point for day point 2 arrives point 3 and ..... Looking it over assent to cruising altitude Midday..... Okay. There is a great richness in having the volume. Basically you can tell what price will do to form the channels from the volume. Since this is only part of a day and it starts before you really can make money, I will whip together a proper fully illustrated set of stuff about 20 to 30 pages long shortly. The deal for me is to show you how price and volume go hand in glove with volume leading. I regard it as one of the neatest breaks ever handed down the line. It is so neat to have something pushing along what it is that you use to make money. Thus, then, we can eliminate many basic items that could be putting you at risk once in a while. I have been under pressure to do this for equities on an interday basis as well. So I will do that too. MY problem is....LOL.. I am old and not up for spurious debate. BUT I am up for answering all the questions in the world as a way to clarify my views I am a cog type person and as a cogger I do have to get the job done carefully and completely as best I can. I think this stuff is very helpful from the point of view that it makes money and really saves a lot of learning steps. Sorry i screwed up getting this stuff into the thread in the correct order. I know i put them in there and they went away some how. Oh well...lol put them in order and read the annotations.
Don't make it more difficult than it is. Think about buyers and sellers and the prices they're paying and the pressures they're putting on each other. At the beginning of the day, the intent is down. How do you know this? Because you're making a lower high, then a lower low. However, what happens after that lower low is troublesome in that the price advances past the opening low and well back into the range. Yes, there is a lower high and, yes, there is a lower low so, yes, there is a trend and the trend is down. However, the trend is not as strong as you'd like because the price pulls back into the range rather than finding resistance at the opening low and continuing its way down (on the opposite side of the coin, when the trend reverses and a new high of the day is made, price advances, then pulls back to what had been the old high without falling back into the range, then resumes its advance. This, more than anything else, tells you that there is serious intent here. Therefore, go ahead and trade that downtrend if you like by shorting the breakdown through the opening low. But when you see price get past that opening low and work its way back into the range, consider exiting immediately until you see just who holds the trumps. You can also wait to short until price has broken down through the opening low then pulled back toward the range, giving you a chance to see just how far back it can come. If it's too strong, then you have no trade. Yet. (If demand is that strong, you're much more likely to get a profitable move to the opposite side, in this case, the upside.) But this is largely off-topic as it has to do with strategy and tactics. The point is that if you don't have that "stairstep" look where each pullback comes back only to the last reaction high before resuming the advance, then you may be looking at a slowing of momentum or even a trend change, if not a complete reversal. The trend can continue upward, but it will be a much slower "grind", and it will be increasingly difficult to place stops. Therefore, don't get trapped into looking at all of this as lines and angles. Think of the traders involved and what they paid and when they'll be profitable and when they'll be underwater and where they might be trapped into taking the wrong side of the trade. That is, after all, where all these movements come from. Gauging their strength by their movement will tell you who's got the upper hand and where the intent is likely to lie. --Db
Good points. I noticed that the last few days too, especially Thursday, people were focused on the wrong time frame trying to short intraday, with sometimes larger positions, a market which was obviously heading higher. We have a tendency to remember what happened yesterday and the day before and what worked and try to extrapolate out to today. But each day's different and different factors affect the market. If you're daytrading you need to focus on intraday trends, if there. If you're swing trading you need to focus on daily and weekly or even monthly trends. Remember to trade according to the trends of the appropriate time frame. Thanks for the chart which is very good.
Exactly. This should be printed on a PostIt and stuck to the monitor. Although the longer-term trends can be of help in "anticipating" trend reversal. For example, if you're bumping up against a gap on the daily, you don't need to go through the whole list of trend reversal signals before realizing that the uptrend you've been trading is very likely at an end (on the other hand, you don't want to cut and run just because of the gap as buyers may just propel you through it). In other words, the longer-term trendlines and support and resistance levels can give you "heads-up" signals so that you're not looking at the face in the smoke but at the man behind the curtain. I can't think of a better reality check than zooming out to a macro view every now and then. --Db
Great point. But you also need to have clear rules set that would make you change your mind on your position and reduce the size or add to it or just close it out.