Help with the 'magic tick'!!!

Discussion in 'Technical Analysis' started by nhorob, Mar 18, 2008.

  1. nhorob


    Can somebody please post a graphic of a 'magic tick'. I recently started reading the AHG thread and for some reason I'm having trouble visualizing it and would appreciate any help. Thanks in advance!!
  2. Schaefer


    My good deed of the week.


    Now Paypal me, my five bucks :D

  3. nhorob


    Thank you! Does the bar that touches the magic tick have to be close above it to consider it 'broken'? I grabbed this chart from another thread where someone said the magic tick hadn't been touched/violated/broken (don't know the proper term) but it looks like it has been to me. Please give me your thoughts..... Thanks again
  4. Schaefer


    Well, that would cost you another five bucks :eek:

    Look at it this way, if you keep looking for confirmation one bar after another, you'd never get in. The key is to look at the big picture. These magic ticks, and 3BRs don't mean anything, if you're not looking at the big picture.

    For example, you see that trend is down, lower high forms above the lower trend line, now you start looking for the magic tick, on the probability that it would break the trend line. You don't just go looking for trend line break, just because you see a triangle, or rectangle, or whatever.

    As for the attached chart, I can't comment on that as I do not see a valid trend line (for me that is).

    Now, my good deed is really done for the week, I say no more :cool:

  5. nhorob


    Understand your points. Thanks for the help.
  6. jtnet


    its not that deep, price just breaks a trend, u can make a million rules about when to enter