House of If You Can Draw A Straight Line

Discussion in 'Journals' started by dbphoenix, Nov 22, 2014.

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  1. k p

    k p

    Db, from the 2nd post where you post the charts, I notice that on the hourly that shows this current channel for the past couple of weeks, you aren't drawing in the channel lines by connecting two swing lows and using the highest high between these two points at your upper line. (You do use the highest high, but you don't connect the proper two swing lows) The way you have them drawn certainly looks like this way, where the mean would be, price reacts much better/closer. Since the mean is more important, is this why you're cutting off some of the extremes? Or is it the case that with this channel, being only a few weeks and hence bound to break, the rules for drawing trend channels can be a little fudged so that price is better contained within?
     
    #21     Nov 24, 2014
  2. dbphoenix

    dbphoenix

    Eliminate the lines.
     
    #22     Nov 24, 2014
  3. k p

    k p

    I do love this advice.. I really do. Focusing on the behavior is at my core now... watching the rejections, the levels beyond which traders don't want to go, it makes perfect sense. But when it comes to entries, when it comes to figuring out where to get out that isn't going to be based on just what I think, but something that I can actually backtest, this is where I'm stumbling.

    Anyway... I know the answer is in the charts... so I just have to find it.
     
    #23     Nov 24, 2014
  4. Gringo

    Gringo

    Db had imparted some words of wisdom on me a very long time ago. The night was clear, with the starry sky looking magnificent in its twinkling glory:

    Db: Do not try and bend the line. That's impossible. Instead only try to realize the truth.

    Gringo: What truth?

    Db: There is no line.

    Gringo: There is no line?

    Db: Then you'll see it is not the line that bends, it is only yourself.


    Gringo
     
    #24     Nov 24, 2014
    niko likes this.
  5. Scaleout.Scalper

    Scaleout.Scalper Guest

    Give credit where credit is due, "The Matrix".
     
    #25     Nov 24, 2014
  6. dbphoenix

    dbphoenix

    Your leg is being pulled.
     
    #26     Nov 25, 2014
  7. dbphoenix

    dbphoenix

    upload_2014-11-25_6-53-14.png

    upload_2014-11-25_6-53-46.png
     
    #27     Nov 25, 2014
  8. dbphoenix

    dbphoenix

    Interested individuals will note that subsequent to the above chart traders found value between 88 and 91.

    Now let's see what they do with it.
     
    #28     Nov 25, 2014
    k p likes this.
  9. MadeMan

    MadeMan


    looks like they faded the breakout , the reactions from 89.. as of now gained no traction ie.. fail to make new highs... or at least test the daily high again...
     
    #29     Nov 25, 2014
  10. Scaleout.Scalper

    Scaleout.Scalper Guest

    There is no leg.
     
    #30     Nov 25, 2014
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